Illinoishttp://www.businessinsider.com/category/illinois
en-usTue, 31 Mar 2015 18:22:49 -0400Tue, 31 Mar 2015 18:22:49 -0400The latest news on Illinois from Business Insiderhttp://static3.businessinsider.com/assets/images/bilogo-250x36-wide-rev.pngBusiness Insiderhttp://www.businessinsider.com
http://www.businessinsider.com/r-two-us-men-arrested-in-plot-to-attack-illinois-military-base-justice-dept-2015-3Two men have been arrested for hatching an ISIS plot against an Illinois military basehttp://www.businessinsider.com/r-two-us-men-arrested-in-plot-to-attack-illinois-military-base-justice-dept-2015-3
Thu, 26 Mar 2015 12:26:00 -0400Reuters and Armin Rosen
<p><img style="float:right;" src="http://static6.businessinsider.com/image/54e5d49feab8ea72417a93e3-840-472/isis guys.jpg" border="0" alt="isis guys"></p><p>A US Army National Guard soldier and his cousin have been arrested on charges of conspiring to support the Islamic State, the Department of Justice said on Thursday.</p>
<p>The two Chicago area men spoke of using army uniforms, military knowledge and access to attack an Illinois military installation, the department said in a statement.</p>
<p>According to a Department of Justice press release, the men were arrested for<span style="font-size: 15px; line-height: 1.5em;">&nbsp;"allegedly conspiring to provide material support to Islamic State of Iraq and the Levant." </span></p>
<p><span style="font-size: 15px; line-height: 1.5em;">One of them, 22-year-old Army National Guard specialist Hasan Edmonds, was arrested at Chicago's Midway Airport while en route to Cairo; his cousin and alleged co-conspirator, Jonas Edmonds, was arrested at his home shortly afterwards.</span></p>
<p><span style="font-size: 15px; line-height: 1.5em;">The press release details an alleged plan to attack a military base in northern Illinois, a plot uncovered during meetings with an undercover FBI agent.</span></p>
<p class="p1">"Both defendants met with an FBI undercover employee and presented a plan to carry out an armed attack against a US military facility in northern Illinois, an installation where Hasan Edmonds had been training," the press release states. "</p>
<p class="p1">Jonas Edmonds asked the FBI undercover employee to assist in the attack and explained that they would use Hasan Edmonds’ uniforms and the information he supplied about how to access the installation and target officers for attack."</p>
<p class="p1">In the press release, Assistant Attorney General Carlin emphasized that the two were actively conspiring to carry out attacks inside the US after linking up with ISIS in the Middle East. “They plotted to attack members of our military within the United States.&nbsp;</p>
<p class="p1">Disturbingly, one of the defendants currently wears the same uniform of those they allegedly planned to attack," Carlin said, according to the press release.</p>
<p class="p1">The two men are facing a maximum penalty of 15 years in prison and a $250,000 fine.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/yemen-war-and-saudi-arabia-and-iran-2015-3" >Saudi Arabia is bombing Iran-backed rebels in Yemen</a></strong></p>
<p><a href="http://www.businessinsider.com/r-two-us-men-arrested-in-plot-to-attack-illinois-military-base-justice-dept-2015-3#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/drunk-driving-checkpoint-regulation-hack-2015-2">A lawyer in Florida has come up with an ingenious way for drivers to evade drunken-driving checkpoints</a></p> http://www.businessinsider.com/aaron-schocks-father-speaks-2015-3Aaron Schock's father had the perfect response to his son's scandalshttp://www.businessinsider.com/aaron-schocks-father-speaks-2015-3
Sun, 22 Mar 2015 10:51:01 -0400Colin Campbell
<p><img style="float:right;" src="http://static5.businessinsider.com/image/5509a8646bb3f7c831b3c3fc-600-/ap811770557995-1.jpg" border="0" alt="AP811770557995" width="600"></p><p>Former Rep. Aaron Schock's (R-Illinois) has a pretty damning assessment of his son's future one day after he resigned from Congress.</p>
<p>In a <a href="http://abc7chicago.com/politics/aaron-schock-broken-but-a-fighter-dad-says/563015/">Tuesday interview with ABC7</a>, Dr. Richard Schock said of the former congressman will be successful in his future endeavors — if he's not headed to jail.</p>
<p><span>"Ten years from now, whatever he's doing, he'll be successful at it. I promise you that. Two years from now, he'll be successful ... if he's not in jail," he said.</span></p>
<p><span style="line-height: 1.5em;">Schock </span><a href="http://www.businessinsider.com/33-year-old-rising-gop-star-quits-after-scandals-2015-3">resigned</a><span style="line-height: 1.5em;"> on Monday amid a series of ethics flaps. Among other things, reports have accused him of misusing taxpayer and campaign funds to maintain a lavish lifestyle. Shock, just 33 years old, had been considered a rising star in his party.</span></p>
<p>Richard Schock, speaking in somber tones outside of his home in Peoria, Illinois, insisted his son is fundamentally a good person who was simply careless with his paperwork.</p>
<p>"He's had a good run. He's done a lot of good. He's helped a lot of people. He won in this district by 75%. Obviously, a lot of people think he's doing a good job," he said. "And everybody I talk to still supports him and prays for him and hopes he comes through this. He's going through a very tough time right now because in his heart, he has always wanted to do what was right and what was good."</p>
<p><span style="line-height: 1.5em;">Richard Schock said his son was concerned his supporters could be got up in potential legal drama. According <a href="http://www.washingtonpost.com/blogs/post-politics/wp/2015/03/16/schock-faces-preliminary-review-of-spending-practices/">to The Washington Post</a>, the Office of Congressional Ethics has launched an investigation of Schock's spending practices.</span></p>
<p><span style="line-height: 1.5em;">The elder Schock also addressed <a href="http://www.businessinsider.com/barney-frank-on-the-aaron-schock-rumor-2015-3">the rumor</a> that his son is gay and suggested it fed into a negative narrative about him.</span></p>
<p class="p1">"Aaron is a little different. He wears stylish clothing, and yet he's not gay. And he's not married. And he's not running around with women. So everyone's throwing up their arms. They can't figure out Aaron so [they think] he must be crooked," he said. </p>
<p><span style="line-height: 1.5em;">Watch the full interview below:</span></p>
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<p> </p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/sloppiness-and-an-oversized-ego-derailed-gop-star-aaron-schock-2015-3" >'Sloppiness and an oversized ego' derailed 33-year-old rising GOP star Aaron Schock</a></strong></p>
<p><a href="http://www.businessinsider.com/aaron-schocks-father-speaks-2015-3#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/what-earth-would-look-like-if-ice-melted-world-map-animation-2015-2">Animated map of what Earth would look like if all the ice melted</a></p> http://www.businessinsider.com/fbi-launches-probe-of-33-year-old-former-rising-gop-star-aaron-schock-2015-3FBI launches probe of 33-year-old former rising GOP star Aaron Schockhttp://www.businessinsider.com/fbi-launches-probe-of-33-year-old-former-rising-gop-star-aaron-schock-2015-3
Fri, 20 Mar 2015 12:54:00 -0400Colin Campbell
<p><img style="float:right;" src="http://static1.businessinsider.com/image/550c4b506bb3f7f83e8b456a-600-/456225528-1.jpg" border="0" alt="456225528" width="600"></p><p>The troubles continue to come for outgoing Rep. Aaron Schock (R-Illinois).&nbsp;</p>
<p>According to Friday reports in the <a href="http://bigstory.ap.org/article/68fb641d78ee44fba6f31c816c71ecb4/source-resigning-rep-schock-under-investigation-justice">Associated Press</a> and <a href="http://www.cnn.com/2015/03/20/politics/aaron-schock-federal-investigation/">CNN</a>, the&nbsp;Federal Bureau of Investigation has opened up a criminal investigation to determine whether Schock broke the law with some of his spending activities.</p>
<p><span style="line-height: 1.5em;">Among other things, Schock faces accusations that&nbsp;he accepted improper gifts, used campaign funds for personal purposes, improperly billed the government for travel expenses, and used taxpayer funds for lavish trips for his staff. </span></p>
<p><span style="line-height: 1.5em;">According to an AP source, federal investigators are already issuing </span><span style="line-height: 1.5em;">subpoenas</span><span style="line-height: 1.5em;">&nbsp;to potential witnesses.</span></p>
<p>"Investigators are focusing on Schock's House office expenses, expenditures by his re-election campaign, and his personal investments aided by long-time political donors," the AP reported. "The owner of an air charter service in Peoria confirmed on Friday that he had been contacted by an ethics investigator interested in Schock's extensive flights on planes owned by campaign donors. Harrel W. Timmons, owner of Jet Air Inc., said the investigators wanted to know about Schock's flights on a plane owned by D&amp;B Air, another firm owned by a prominent Schock donor in Peoria."</p>
<p>The 33-year-old congressman&nbsp;<a href="http://www.businessinsider.com/33-year-old-rising-gop-star-quits-after-scandals-2015-3">suddenly announced</a>&nbsp;his intent to resign on Tuesday.&nbsp;</p>
<p>Here's <a href="http://www.businessinsider.com/sloppiness-and-an-oversized-ego-derailed-gop-star-aaron-schock-2015-3">an overview of some of Schock's questionable activities</a>:</p>
<ul>
<li>Schock reportedly hired a donor's wife to decorate his office, which inspired comparisons to the popular drama show "Downton Abbey."&nbsp;<a href="http://www.washingtonpost.com/lifestyle/style/hes-got-a-downton-abbey-inspired-office-but-rep-aaron-schock-wont-talk-about-it/2015/02/02/1d3f1466-ab1f-11e4-abe8-e1ef60ca26de_story.html">The Washington Post described the outer office entry room</a>&nbsp;like this: "Bright red walls. A gold-colored wall sconce with black candles. A Federal-style bull's-eye mirror with an eagle perched on top." His own private office had "a drippy crystal chandelier, a table propped up by two eagles, a bust of Abraham Lincoln and massive arrangements of pheasant feathers," according to the newspaper. (<a href="http://www.washingtonpost.com/news/morning-mix/wp/2015/03/18/the-self-destructive-mania-of-rep-aaron-schock/">The interior designer denied</a>&nbsp;the design was influenced by "Downton Abbey.")</li>
<li>Schock hired a professional photographer to "document his life for Instagram" as he traveled the world, according to Politico.&nbsp;<a href="https://instagram.com/aaronschock/">His page</a>&nbsp;is now private, but the Post reported that the photos showed him "surfing, hiking across glaciers, tangoing on the streets of Buenos Aires, and smiling next to duck-faced pop star Ariana Grande."</li>
<li>A political action committee associated with Schock paid a massage parlor $1,440 for a fundraising event,&nbsp;<a href="http://www.businessinsider.com/fresh-face-of-the-gop-spent-taxpayer-and-campaign-funds-for-high-flying-lifestyle-2015-2">according to</a>&nbsp;the Associated Press.</li>
<li>Records also show that Schock took his interns to a sold-out Katy Perry concert in Washington, the AP reported.</li>
<li>Schock claimed reimbursements for 170,000 miles he says he drove over a period of about four years, but he sold the only vehicle he owned during that time with just 80,000 miles on it, according to Politico.</li>
<li>The left-leaning organization&nbsp;Citizens for Responsibility and Ethics in Washington,&nbsp;<a href="http://www.businessinsider.com/congress-corrupt-list-2012-9?op=1">which releases a list of the most corrupt members of Congress every year</a>,&nbsp;claimed that Schock received reimbursements from his campaign fund for P90x workout DVDs, expensive meals, and travel abroad to Europe.</li>
<li>Schock was also known for enjoying "posh hotels and private jets," according to Politico. His preferences were so extravagant that they drew the attention — and eyerolls — of fellow Republicans.</li>
<li>In a possible signal of his aspirations for the future, Schock spent about $5,000 on a replica of President Barack Obama's podium,&nbsp;<a href="http://www.buzzfeed.com/evanmcsan/aaron-schocks-falcon#.atXx8gNQR">according to</a>&nbsp;BuzzFeed.</li>
</ul>
<p>A Schock spokesman did not immediately respond to a request for comment from Business Insider on the reported investigation. However, in his resignation statement, Schock insisted he maintained high standards for his office.</p>
<p>"The constant questions over the last six weeks have proven a great distraction that has made it too difficult for me to serve the people of the 18th District with the high standards that they deserve and which I have set for myself," he said at the time. "I have always sought to do what’s best for my constituents and I thank them for the opportunity to serve."</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/anthony-weiner-on-aaron-schock-2015-3" >Anthony Weiner's 5 takeaways from the Aaron Schock scandals</a></strong></p>
<p><a href="http://www.businessinsider.com/fbi-launches-probe-of-33-year-old-former-rising-gop-star-aaron-schock-2015-3#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/law-school-worth-money-job-rank-2015-1">Why Law School Is A Waste Of Money Unless You Get Into A Top School</a></p> http://www.businessinsider.com/r-darin-lahood-son-of-former-us-transportation-secretary-eyes-schock-seat-2015-3Republican candidates are circling Aaron Schock's seathttp://www.businessinsider.com/r-darin-lahood-son-of-former-us-transportation-secretary-eyes-schock-seat-2015-3
Wed, 18 Mar 2015 15:23:00 -0400Elvina Nawaguna
<p><img style="float:right;" src="http://static1.businessinsider.com/image/5509d079ecad049854cdcdf0-600-/ap723855960932-4.jpg" border="0" alt="AP723855960932" width="600"></p><p>WASHINGTON (Reuters) - Darin LaHood, the son of former Transportation Secretary Ray LaHood, said he would run for the U.S. House seat being vacated by embattled Republican Representative Aaron Schock.</p>
<p>Darin LaHood, a Republican member of the Illinois state Senate, told WMBD radio in Peoria, Illinois, that he planned to run in the special election to fill the seat once held by his father.</p>
<p>"This is going to be a competitive race. I'm going to work really hard, and I'm going to leave no stone unturned," Darin LaHood told WMBD.</p>
<p>Schock announced on Tuesday he would step down at the end of this month, following questions about tens of thousands of dollars in inappropriate mileage reimbursements and lavish office decorations in his Capitol Hill office.</p>
<p>Ray LaHood, a Republican, represented Illinois' 18th Congressional District from 1995 to 2009 before stepping down to take the helm of the U.S. Department of Transportation until 2013. Schock succeeded LaHood in the House seat.</p>
<p>The 47-year-old Darin LaHood spent nine years as a state and federal prosecutor before becoming a state senator.</p>
<p>State law requires that Illinois Governor Bruce Rauner schedule a special election within five days of Schock's March 31 resignation, and a vote must happen within 120 days of the seat becoming vacant to fill the remainder of the term.<span style="line-height: 1.5em;">&nbsp;</span></p>
<p><span style="line-height: 1.5em;">&nbsp;</span></p>
<p>(Reporting by Elvina Nawaguna; Editing by Eric Beech)</p><p><a href="http://www.businessinsider.com/r-darin-lahood-son-of-former-us-transportation-secretary-eyes-schock-seat-2015-3#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/drunk-driving-checkpoint-regulation-hack-2015-2">A lawyer in Florida has come up with an ingenious way for drivers to evade drunken-driving checkpoints</a></p> http://www.businessinsider.com/aaron-schocks-father-speaks-2015-3Aaron Schock's father had the perfect response to his son's scandalshttp://www.businessinsider.com/aaron-schocks-father-speaks-2015-3
Wed, 18 Mar 2015 13:28:00 -0400Colin Campbell
<p><img style="float:right;" src="http://static5.businessinsider.com/image/5509a8646bb3f7c831b3c3fc-600-/ap811770557995-1.jpg" border="0" alt="AP811770557995" width="600"></p><p>Former Rep. Aaron Schock's (R-Illinois) has a pretty damning assessment of his son's future one day after he resigned from Congress.</p>
<p>In a <a href="http://abc7chicago.com/politics/aaron-schock-broken-but-a-fighter-dad-says/563015/">Tuesday interview with ABC7</a>, Dr. Richard Schock said of the former congressman will be successful in his future endeavors — if he's not headed to jail.</p>
<p><span>"Ten years from now, whatever he's doing, he'll be successful at it. I promise you that. Two years from now, he'll be successful ... if he's not in jail," he said.</span></p>
<p><span style="line-height: 1.5em;">Schock </span><a href="http://www.businessinsider.com/33-year-old-rising-gop-star-quits-after-scandals-2015-3">resigned</a><span style="line-height: 1.5em;"> on Monday amid a series of ethics flaps. Among other things, reports have accused him of misusing taxpayer and campaign funds to maintain a lavish lifestyle. Shock, just 33 years old, had been considered a rising star in his party.</span></p>
<p>Richard Schock, speaking in somber tones outside of his home in Peoria, Illinois, insisted his son is fundamentally a good person who was simply careless with his paperwork.</p>
<p>"He's had a good run. He's done a lot of good. He's helped a lot of people. He won in this district by 75%. Obviously, a lot of people think he's doing a good job," he said. "And everybody I talk to still supports him and prays for him and hopes he comes through this. He's going through a very tough time right now because in his heart, he has always wanted to do what was right and what was good."</p>
<p><span style="line-height: 1.5em;">Richard Schock said his son was concerned his supporters could be got up in potential legal drama. According <a href="http://www.washingtonpost.com/blogs/post-politics/wp/2015/03/16/schock-faces-preliminary-review-of-spending-practices/">to The Washington Post</a>, the Office of Congressional Ethics has launched an investigation of Schock's spending practices.</span></p>
<p><span style="line-height: 1.5em;">The elder Schock also addressed <a href="http://www.businessinsider.com/barney-frank-on-the-aaron-schock-rumor-2015-3">the rumor</a> that his son is gay and suggested it fed into a negative narrative about him.</span></p>
<p class="p1">"Aaron is a little different. He wears stylish clothing, and yet he's not gay. And he's not married. And he's not running around with women. So everyone's throwing up their arms. They can't figure out Aaron so [they think] he must be crooked," he said. </p>
<p><span style="line-height: 1.5em;">Watch the full interview below:</span></p>
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<iframe width="476" height="270" src="http://abc7chicago.com/video/embed/?pid=563015" frameborder="0" allowfullscreen></iframe>
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<p> </p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/sloppiness-and-an-oversized-ego-derailed-gop-star-aaron-schock-2015-3" >'Sloppiness and an oversized ego' derailed 33-year-old rising GOP star Aaron Schock</a></strong></p>
<p><a href="http://www.businessinsider.com/aaron-schocks-father-speaks-2015-3#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/what-earth-would-look-like-if-ice-melted-world-map-animation-2015-2">Animated map of what Earth would look like if all the ice melted</a></p> http://www.businessinsider.com/fresh-face-of-the-gop-spent-taxpayer-and-campaign-funds-for-high-flying-lifestyle-2015-2'Fresh face of the GOP' spent taxpayer and campaign funds on concerts, trips, and massageshttp://www.businessinsider.com/fresh-face-of-the-gop-spent-taxpayer-and-campaign-funds-for-high-flying-lifestyle-2015-2
Tue, 24 Feb 2015 02:23:00 -0500Jack Gillum and Stephen Braun
<p><img style="float:right;" src="http://static4.businessinsider.com/image/54ec23b469beddc3435c1ff5-1200-924/aaron-schock-1.jpg" border="0" alt="Aaron Schock"></p><p>WASHINGTON (AP) -- Illinois Rep. Aaron Schock, a rising Republican star already facing an ethics inquiry, has spent taxpayer and campaign funds on flights aboard private planes owned by some of his key donors, The Associated Press has found.</p>
<p>There also have been other expensive travel and entertainment charges, including for a massage company and music concerts.</p>
<p>The expenses highlight the relationships that lawmakers sometimes have with donors who fund their political ambitions, an unwelcome message for a congressman billed as a fresh face of the GOP. The AP identified at least one dozen flights worth more than $40,000 on donors' planes since mid-2011.</p>
<p>The AP tracked Schock's reliance on the aircraft partly through the congressman's penchant for uploading pictures and videos of himself to his Instagram account. The AP extracted location data associated with each image then correlated it with flight records showing airport stopovers and expenses later billed for air travel against Schock's office and campaign records.</p>
<p>Asked for comment, Schock responded in an email on Monday that he travels frequently throughout his Peoria-area district "to stay connected with my constituents" and also travels to raise money for his campaign committee and congressional colleagues.</p>
<p>He said he takes compliance with congressional funding rules seriously and has begun a review of his office's procedures "concerning this issue and others to determine whether they can be improved." The AP had been seeking comment from Schock's office since mid-February to explain some of his expenses.</p>
<p>Donors who owned planes on which travel was paid for by Schock's House and political accounts did not immediately respond to requests seeking comment Monday.</p>
<p>Schock's high-flying lifestyle, combined with questions about expenses decorating his office after the TV show "Downton Abbey," add to awkward perceptions on top of allegations he illegally solicited donations in 2012.</p>
<p>The Office of Congressional Ethics said in a 2013 report that there was reason to believe Schock violated House rules by soliciting campaign contributions for a committee that backed Rep. Adam Kinzinger, R-Ill., in a 2012 primary. The House Ethics Committee has said that query remains open.</p>
<p>"Haters are gonna hate," Schock, 33, told ABC News after the "Downton Abbey" story broke in The Washington Post, brushing off the controversy by invoking a line from one of pop singer Taylor Swift's songs.</p>
<p><img src="http://static3.businessinsider.com/image/54ec25066bb3f7cd415c1fed-1200-858/136184523.jpg" border="0" alt="Aaron Schock"><span style="line-height: 1.5em;">Lawmakers can use office funds for private flights as long as payments cover their share of the costs. But most of the flights Schock covered with office funds occurred before the House changed its rules in January 2013. The earlier rules prohibited lawmakers from using those accounts to pay for flights on private aircraft, allowing payments only for federally licensed charter and commercial flights.</span></p>
<p>Schock's House account paid more than $24,000 directly to a Peoria aviation firm for eight flights provided by one of Schock's donor's planes in 2011 and 2012. While the aircraft flies as part of an Illinois charter service, the owner of the service told the AP on Monday that any payments made directly to the donor's aviation company would not have been for charter flights.</p>
<p>Beyond air travel, Schock spent thousands more on tickets for concerts, car mileage reimbursements - among the highest in Congress - and took his interns to a sold-out Katy Perry concert in Washington last June.</p>
<p>The donor planes include an Italian-made Piaggio twin-engine turboprop owned by Todd Green of Springfield, Illinois, who runs car dealerships in Schock's district with his brother, Jeff. Todd Green told a Springfield newspaper that Jeff - a pilot and campaign contributor - and Schock have been friends for a long time.</p>
<p>The AP found that Green's plane traveled to at least eight cities last October in the Midwest and East Coast, cities where Schock met with political candidates ahead of the midterm elections. His Instagram account's location data and information from the service FlightAware even pinpointed Schock's location on a stretch of road near one airport before Green's plane departed.</p>
<p>Campaign records show a $12,560 expense later that month to Jeff Green from a political action committee associated with Schock, called the "GOP Generation Y Fund." That same month, the PAC paid $1,440 to a massage parlor for a fundraising event.</p>
<p><img src="http://static4.businessinsider.com/image/54ec29196da8118a715c1ff0-1200-858/82663945.jpg" border="0" alt="Aaron Schock"><span style="line-height: 1.5em;">In November 2013, Schock cast votes in the Capitol just after Green's plane landed at nearby Reagan National Airport. Shortly after Green's return to Peoria, Schock posted a photo from his "Schocktoberfest" fundraising event at a brewery in his district. Schock billed his office account $11,433 for commercial transportation during that same, four-day period to a Peoria flight company, Byerly Aviation.</span></p>
<p>The AP's review covered Schock's travel and entertainment expenses in his taxpayer-funded House account, in his campaign committee and the GOP Generation Y Fund. Records show more than $1.5 million in contributions to the Generation Y Fund since he took office in 2009.</p>
<p>Schock used House office expenses to pay more than $24,000 for eight flights between May 2011 and December 2012 on a six-passenger Cessna Golden Eagle owned by D&amp;B Jet Inc., run by Peoria agribusiness consultant and major Schock donor Darren Frye. While D&amp;B is a private corporate aviation firm, it also flies with Jet Air Inc., an Illinois-based aviation firm licensed by the FAA for charter service.</p>
<p>Records show Schock used House funds to directly pay D&amp;B instead of Jet Air for the eight flights. Under the old rules that previously allowed House funds to pay only for charter or commercial aircraft, Schock's office would likely not have been authorized to pay for private flights unless the House Ethics Committee approved it.</p>
<p>Harrel W. Timmons, Jet Air's owner, said in a telephone interview that any charter flights D&amp;B flies through his firm are paid directly to Jet Air. "They've got their own corporate jet and pilot," he said.</p>
<p>House records also show that, since 2013, Schock has flown four times on a Cessna owned by Peoria auto dealer Michael J. Miller and businessman Matthew Vonachen, who heads a janitorial firm, Vonachen Services Inc. Schock's House office account paid nearly $6,000 total for the four flights, according to federal data published online by the nonprofit Sunlight Foundation.</p>
<p>Under current House rules, the payments for the private flights would be authorized if they paid for Schock's portion of each flight. It is not clear from records how many other passengers flew on the same flights. USA Today on Friday first reported potential issues with House ethics rules in revealing some of the flights.</p>
<p>Vonachen and his family donated at least $27,000 to Schock's campaigns, while Miller contributed $10,000 to the Automotive Free International Trade PAC. Schock has supported recent free trade agreements with South Korea and with several other countries, which the Automotive PAC - a Schock contributor - lauded.</p>
<p>Schock's reliance on donor-owned planes and on his government allowance to pay for the flights mirrors the use by Sen. Robert Menendez, D-N.J., of a private jet owned by a wealthy eye doctor and major donor. Prompted by an ethics investigation, Menendez reimbursed donor Salomon Melgen $58,500 for two flights.</p>
<p>GOP Generation Y paid more than $24,000 for tickets and festivals, including $13,000 to country music events, $4,700 in expenses to Chicago ticket broker SitClose.com, and $3,000 for a "fundraising event" to an organization that runs the Global Citizen Festival in New York.</p>
<p>"You can't say no when your boss invites you. Danced my butt off," one former intern posted on his Instagram account with a picture of Perry at her June 2014 show. PAC records show a $1,928 expense for the ticket service StubHub.com two months later, listing it only as a "PAC fundraising event."</p>
<p>Records show Schock also requested more than $18,000 in mileage reimbursements since 2013, among the highest in Congress. His office has previously said it was reviewing those expenses.</p><p><a href="http://www.businessinsider.com/fresh-face-of-the-gop-spent-taxpayer-and-campaign-funds-for-high-flying-lifestyle-2015-2#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/iphone-headphones-tricks-2015-2">14 things you didn't know your iPhone headphones could do</a></p> http://www.businessinsider.com/congressional-staffer-resigns-after-posting-racist-facebook-comments-2015-2Congressional staffer resigns after posting racist Facebook commentshttp://www.businessinsider.com/congressional-staffer-resigns-after-posting-racist-facebook-comments-2015-2
Thu, 05 Feb 2015 15:59:08 -0500Daniel Strauss
<div class="story-teaser">
<p><img style="float:right;" src="http://static1.businessinsider.com/image/54d3d82d6bb3f70328822900-600-/ap723855960932-1.jpg" border="0" alt="AP723855960932" width="600">Rep. Aaron Schock (R-IL) has fired his communications director, Benjamin Cole, after Cole posted racially offensive comments on his Facebook page.</p>
</div>
<div class="story-body">
<p>In a statement to the&nbsp;<a href="http://www.pjstar.com/article/20150205/NEWS/150209530">Peoria Journal-Star</a>, Schock said that Cole offered the congressman his resignation.</p>
<p>"I am extremely disappointed by the inexcusable and offensive online comments made by a member of my staff," Schock (pictured) told the Illinois newspaper. "I would expect better from any member of my team. Upon learning about them, I met with Mr. Cole and he offered his resignation."</p>
<p>According to&nbsp;<a href="http://www.buzzfeed.com/andrewkaczynski/aaron-schock-adviser-made-more-racially-charged-comments-on?utm_term=.baRjGPaxw#.cwL24W8p6O">BuzzFeed</a>&nbsp;and ThinkProgress, Cole&nbsp;<a href="http://talkingpointsmemo.com/livewire/benjamin-cole-aaron-shock-obama-mosque">wrote</a>&nbsp;on his Facebook page that he thought, "They should build a mosque on White House grounds." He also wrote in the comments of that post that "It would be nice for the President to have his own house of worship, since he's not been able to find one suitable in DC since 2004 when he moved here."</p>
<p>In an October 2013 post, Cole also made fun of black people walking near his apartment in Washington D.C.</p>
<p>"So apparently the closing of the National Zoo has forced animals to conduct their mating rituals on my street. #gentrifytoday Pt.1," Cole&nbsp;<a href="http://talkingpointsmemo.com/livewire/benjamin-cole-schock-facebook-black-people-animals">wrote</a>&nbsp;according to Think Progress, which first reported the news.</p>
<p>Cole first gained notoriety after attempting to get the&nbsp;<a href="http://www.washingtonpost.com/lifestyle/style/hes-got-a-downton-abbey-inspired-office-but-rep-aaron-schock-wont-talk-about-it/2015/02/02/1d3f1466-ab1f-11e4-abe8-e1ef60ca26de_story.html?postshare=4811422934264510">The Washington Post</a>'s Ben Terris to delete photos he took while reporting on the&nbsp;<a href="http://talkingpointsmemo.com/livewire/aaron-schock-responds-downton-abbey-office-haters">lavish, Downton Abbey-style furnishings</a>&nbsp;of Schock's D.C. office.</p>
<p>"Are you taking pictures of the office?" Cole asked initially. "Who told you you could do that?…Okay, stay where you are. You've created a bit of a crisis in the office."</p>
</div><p><a href="http://www.businessinsider.com/congressional-staffer-resigns-after-posting-racist-facebook-comments-2015-2#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/flying-car-aeromobil-flies-430-miles-2014-12">This Flying Car Is Real And It Can Fly 430 Miles On A Full Tank</a></p> http://www.businessinsider.com/r-after-long-wait-illinois-to-issue-medical-marijuana-licenses-2015-2Medical marijuana is coming to Illinoishttp://www.businessinsider.com/r-after-long-wait-illinois-to-issue-medical-marijuana-licenses-2015-2
Tue, 03 Feb 2015 17:24:00 -0500Mary Wisniewski
<p><img style="float:right;" src="http://static2.businessinsider.com/image/54d147d2eab8ea7a0be80070-600-/marijuana-gummy-bears-3.jpg" border="0" alt="marijuana gummy bears" width="600"></p><p>Illinois will begin issuing licenses to grow and distribute medical marijuana 18 months after a law was signed legalizing it, Governor Bruce Rauner's general counsel said in a statement on Monday.</p>
<p>Former Democratic Governor Pat Quinn, who supported medical marijuana, left office in January without issuing licenses for growth and distribution, leaving it to Rauner, a Republican, who asked for a review of the selection process.</p>
<p>Quinn's administration had prepared lists of possible recipients based on scoring of applications. But Rauner's team's review concluded that some applicants had been disqualified without clear procedures, giving rise to legal liabilities.</p>
<p>As a result, Rauner issued on Monday a list of growers and dispensary operators who will receive permits and licenses in many areas of the state, with some gaps that will be filled in after review of applications that had been disqualified on Quinn's preliminary list of recipients.</p>
<p>"Any applicant that was recommended for disqualification will be fully informed of the basis for that decision (and) given an opportunity to respond," Rauner's General Counsel Jason Barclay said in the statement.</p>
<p>Marla Levi, 51, a multiple sclerosis patient of Buffalo Grove, Illinois who's been waiting for legal medical marijuana, said she hopes the right candidates get licenses. "I hope they put patients first, and not money," she said.</p>
<p>Several months could still go by before medical marijuana is sold in Illinois. Winners must put up a bond, pay license fees and register agents. Also, any marijuana sold in the state must be grown in the state, which takes at least 4-1/2 months.</p>
<p>Illinois is one of 23 states along with the District of Columbia that permit medical marijuana. Illinois' trial program expires in 2017.</p>
<p>&nbsp;</p>
<p>(Writing by Fiona Ortiz; Editing by Eric Walsh)</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/how-marijuana-affects-working-out-2015-1" >Marijuana's Surprising Effects On Athletic Performance</a></strong></p>
<p><a href="http://www.businessinsider.com/r-after-long-wait-illinois-to-issue-medical-marijuana-licenses-2015-2#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/why-men-cheat-affair-love-sex-psychotherapist-2015-1">Research Reveals Why Men Cheat, And It's Not What You Think</a></p> http://www.businessinsider.com/illinoiss-public-pension-crisis-2014-12Illinois Risks Default If It Doesn’t Tackle Its Public Pension Crisis http://www.businessinsider.com/illinoiss-public-pension-crisis-2014-12
Sun, 28 Dec 2014 15:05:00 -0500
<p><span style="font-size: 15px; line-height: 1.5em;"><img style="float:right;" src="http://static3.businessinsider.com/image/54a058e2eab8ea866ded842b-600-/458423790.jpg" border="0" alt="brucer rauner" width="600">Bruce Rauner, a Republican, liked to talk tough about unions and public-sector pensions when he was campaigning for governor in Illinois. </span></p>
<p><span style="font-size: 15px; line-height: 1.5em;">"The system is full of fraud and self-dealing and abuses, such as folks who have a pay rise in the last years of their career [so their pension is higher] or folks who moved in and out of certain jobs, so they could get a pension," he said in August 2013. </span></p>
<p><span style="font-size: 15px; line-height: 1.5em;">With two or three pensions, some are making as much as half a million dollars in retirement pay, he claimed. This, he thundered, is a rip-off of taxpayers and other workers.</span></p>
<p>But as soon as Mr Rauner was elected last month, the self-made millionaire toned down the rhetoric. The size and complexity of the public-pension mess suddenly hit him, and, aware that he had to bring together Democrats, unions and creditors, he began to backtrack.</p>
<p>He declares now that it is most important to "protect what is done — don't change history. Don't modify or reduce anybody's pension who has retired, or has paid into a system and they've accrued benefits."</p>
<p>Illinois is like Greece in one obvious way: It overpromised and underdelivered on pensions and has little appetite for dealing with the problem, says Hal Weitzman of the University of Chicago Booth School of Business.</p>
<p>This large Midwestern state, with a population of 13 million (Greece has 11 million, though a far smaller GDP than Illinois), has the most underfunded retirement system of any state and the largest pension burden relative to state revenue. It also has the highest number of public-pension funds close to insolvency, such as the one looking after Chicago's police and firemen.</p>
<p><img style="float:right;" src="http://static4.businessinsider.com/image/54a0542fecad04f5457bba3c-480-465/illinois-econ-chart.png" border="0" alt="illinois econ chart">According to the Civic Federation, a budget watchdog, Illinois has piled up a whopping $111 billion in unfunded pension liabilities (see chart), in addition to $56 billion in debt for health benefits for pensioners.</p>
<p>The state devotes one in four of its tax dollars to pensions, which is more than it spends on primary and secondary education.</p>
<p>Mainly as a result of this gargantuan pension debt, Illinois's bond rating is the lowest of all the states, which means dramatically higher borrowing costs.</p>
<p>When the state government failed to address pension underfunding in its budget for 2014, two credit-rating agencies, Fitch and Moody's, cut the state's bond rating, which in Moody's case put Illinois on a par with Botswana. (An incensed editorial in the Chicago Tribune asked what Botswana had done to be so insulted.)</p>
<p>The main reason for the pension debacle is decades of underfunding. "Everything was always done with a short-term view," says Laurence Msall, head of the Civic Federation. "Unique to Illinois is the idea that you don't have to pay for pensions and you don't have to follow actuarial recommendations."</p>
<p>Whereas most other states follow the rules set by the Governmental Accounting Standards Board (GASB), which, however imperfect, require some budget discipline, Illinois has mostly ignored them.</p>
<p>In 2013 the state paid $2.8 billion into its pension fund for teachers, one of its five pension funds, but GASB rules would have required a contribution of $3.6 billion, says Joshua Rauh, a professor of finance at Stanford University. According to Mr Rauh's calculations, Illinois's true unfunded pension liability is $250 billion.</p>
<p>All the other calculations, he says, are based on over-optimistic assumptions. For example, the state assumes an average annual return on its investments of 7.75% over 30 years. But according to Mr Rauh it has only a 25% chance of achieving gains of that order.</p>
<p>After the public-relations disaster of the credit downgrades, Pat Quinn, the outgoing governor belatedly pushed for pension reform. In December 2013 the legislature approved a bill that reduces annual increases in pension payments, increases the retirement age and caps pensionable salaries.</p>
<p>Some have welcomed it as Illinois's first actuarially sound pension-funding scheme, designed to get the five plans fully funded in 30 years. Mr Rauh, however, thinks that the reform "does not even come close to addressing the problem".</p>
<p>Mr Quinn's changes were supposed to become law in June, but were held up by legal challenges and ultimately rejected by Judge John Belz of the Sangamon County circuit court for violating the state constitution, which makes existing pension contracts virtually untouchable. (Only New York and Arizona have similar safeguards in their constitutions.) Lisa Madigan, the state attorney-general, has appealed against the ruling to the Illinois Supreme Court, which is looking at the case.</p>
<p>James Spiotto, a lawyer at Chapman Strategic Advisors, argues that if a state is unable rather than unwilling to pay its pensions, then the well-being of its citizens overrides any constitutional protections. The Supreme Court has consistently ruled that states cannot abdicate their responsibility to provide essential services and infrastructure. And if Illinois cuts public services yet further the state will lose more taxpayers, resulting in "a death spiral," says Mr Spiotto.</p>
<p>Union representatives disagree with this scenario. Dan Montgomery, the president of the Illinois Federation of Teachers, believes Mr Quinn's reform is illegal and that the state must find ways to pay up, for instance by extending the repayment schedule of its debt and increasing tax revenue by closing loopholes and expanding a sales tax on services.</p>
<p>Mr Rauner was elected on a promise that he would not make his predecessor's temporary increase of income and corporate tax permanent. But he has not explained how Illinois will cope with the loss of more than $7 billion in annual revenue. Nor has he laid out any broader plans for fixing the pensions mess.</p>
<p>For a start he might look to Washington and the budget deal hashed out in Congress. This allows some distressed private-sector pension plans to cut the benefits of retirees. In Illinois, though, more inventive measures may be needed.</p>
<p>In 2015 Illinois will either sink further into a Greek-style morass of debt or start its long-delayed rehabilitation. Mr Rauner has warned of a rough 24 months ahead. "I ain't going to be Mr Popularity for a while," he says. Voters may not mind, if he is able to sort this disaster out.</p>
<p>Click <a href="https://subscriptions.economist.com/nwcd">here</a> to subscribe to The Economist.</p>
<p><img class="nc_pixel" src="https://pixel.newscred.com/px.gif?key=YXJ0aWNsZT0yOGI2ZWU2M2NmZGY4ZTcwMjI0ZTE5Zjg0NTY4OTkxOCZwdWJsaXNoZXI9NzMwZWI4NmFiNTlmMGQ0MTkyNmFjNjViMDFmODNlMmY=" border="0" alt="" width="1" height="1"></p><p><a href="http://www.businessinsider.com/illinoiss-public-pension-crisis-2014-12#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/public-pensions-americas-greece-2014-12Public Pensions Are America's Greecehttp://www.businessinsider.com/public-pensions-americas-greece-2014-12
Sat, 20 Dec 2014 13:06:00 -0500The Economist
<p><span style="line-height: 1.5em;"><img style="float:right;" src="http://static5.businessinsider.com/image/4ddbff01cadcbbfd2d1c0000-703-527/greek-protests.jpg" border="0" alt="Greek Protests">Bruce Rauner, a Republican, liked to talk tough about unions and public-sector pensions when he was campaigning for governor in Illinois. </span></p>
<p><span style="line-height: 1.5em;">"The system is full of fraud and self-dealing and abuses, such as folks who have a pay rise in the last years of their career [so their pension is higher] or folks who moved in and out of certain jobs, so they could get a pension," he said in August 2013. </span></p>
<p><span style="line-height: 1.5em;">With two or three pensions, some are making as much as half a million dollars in retirement pay, he claimed. This, he thundered, is a rip-off of taxpayers and other workers.</span></p>
<p>But as soon as Mr Rauner was elected last month, the self-made millionaire toned down the rhetoric. The size and complexity of the public-pension mess suddenly hit him, and, aware that he had to bring together Democrats, unions and creditors, he began to backtrack. He declares now that it is most important to "protect what is done--don't change history. Don't modify or reduce anybody's pension who has retired, or has paid into a system and they've accrued benefits."</p>
<p><span style="line-height: 1.5em;">Illinois is like Greece in one obvious way: it overpromised and underdelivered on pensions and has little appetite for dealing with the problem, says Hal Weitzman of the University of Chicago Booth School of Business. This large Midwestern state, with a population of 13m (Greece has 11m, though a far smaller GDP than Illinois), has the most underfunded retirement system of any state and the largest pension burden relative to state revenue.</span></p>
<p><span style="line-height: 1.5em;">It also has the highest number of public-pension funds close to insolvency, such as the one looking after Chicago's police and firemen. According to the Civic Federation, a budget watchdog, Illinois has piled up a whopping $111 billion in unfunded pension liabilities (see chart), in addition to $56 billion in debt for health benefits for pensioners. The state devotes one in four of its tax dollars to pensions, which is more than it spends on primary and secondary education.</span></p>
<p><img src="http://static3.businessinsider.com/image/5495afa4ecad04d020daa75f-1200-600/rtr4cvd2.jpg" border="0" alt="RTR4CVD2" style="color: #000000;"><span style="line-height: 1.5em;">Mainly as a result of this gargantuan pension debt, Illinois's bond rating is the lowest of all the states, which means dramatically higher borrowing costs. When the state government failed to address pension underfunding in its budget for 2014, two credit-rating agencies, Fitch and Moody's, cut the state's bond rating, which in Moody's case put Illinois on a par with Botswana. (An incensed editorial in the Chicago Tribune asked what Botswana had done to be so insulted.)</span></p>
<p>The main reason for the pension debacle is decades of underfunding. "Everything was always done with a short-term view," says Laurence Msall, head of the Civic Federation. "Unique to Illinois is the idea that you don't have to pay for pensions and you don't have to follow actuarial recommendations."</p>
<p><span style="line-height: 1.5em;">Whereas most other states follow the rules set by the Governmental Accounting Standards Board (GASB), which, however imperfect, require some budget discipline, Illinois has mostly ignored them. In 2013 the s</span><span style="line-height: 1.5em;">tate paid $2.8 billion into its pension fund for teachers, one of its five pension funds, but GASB rules would have required a contribution of $3.6 billion, says Joshua Rauh, a professor of finance at Stanford University.</span></p>
<p><span style="line-height: 1.5em;">According to Mr Rauh's calculations, Illinois's true unfunded pension liability is $250 billion. All the other calculations, he says, are based on over-optimistic assumptions. For example, the state assumes an average annual return on its investments of 7.75% over 30 years. But according to Mr Rauh it has only a 25% chance of achieving gains of that order.</span></p>
<p><span style="line-height: 1.5em;">After the public-relations disaster of th</span><span style="line-height: 1.5em;">e credit downgrades, Pat Quinn, the outgoing governor belatedly pushed for pension reform. In December 2013 the legislature approved a bill that reduces annual increases in pension payments, increases the retirement age and caps pensionable salaries. Some have welcomed it as Illinois's first actuarially sound pension-funding scheme, designed to get the five plans fully funded in 30 years. Mr Rauh, however, thinks that the reform "does not even come close to addressing the problem".</span></p>
<p><img src="http://static1.businessinsider.com/image/54463302ecad044b5e13cef3-1200-924/ap287297710983.jpg" border="0" alt=" Illinois Gov. Pat Quinn" style="color: #000000;"></p>
<p><span style="line-height: 1.5em;">Mr Quinn's changes were supposed to become law in June, but were held up by legal challenges and ultimately rejected by Judge John Belz of the Sangamon County circuit court for violating the state constitution, which makes existing pension contracts virtually untouchable. (Only New York and Arizona have similar safeguards in their constitutions.) Lisa Madigan, the state attorney-general, has appealed against the ruling to the Illinois Supreme Court, which is looking at the case.</span></p>
<p>James Spiotto, a lawyer at Chapman Strategic Advisors, argues that if a state is unable rather than unwilling to pay its pensions, then the well-being of its citizens overrides any constitutional protections. The Supreme Court has consistently ruled that states cannot abdicate their responsibility to provide essential services and infrastructure. And if Illinois cuts public services yet further the state will lose more taxpayers, resulting in "a death spiral", says Mr Spiotto.</p>
<p>Union representatives disagree with this scenario. Dan Montgomery, the president of the Illinois Federation of Teachers, believes Mr Quinn's reform is illegal and that the state must find ways to pay up, for instance by extending the repayment schedule of its debt and increasing tax revenue by closing loopholes and expanding a sales tax on services.</p>
<p>Mr Rauner was elected on a promise that he would not make his predecessor's temporary increase of income and corporate tax permanent. But he has not explained how Illinois will cope with the loss of more than $7 billion in annual revenue. Nor has he laid out any broader plans for fixing the pensions mess. For a start he might look to Washington and the budget deal hashed out in Congress. This allows some distressed private-sector pension plans to cut the benefits of retirees. In Illinois, though, more inventive measures may be needed.</p>
<p>In 2015 Illinois will either sink further into a Greek-style morass of debt or start its long-delayed rehabilitation. Mr Rauner has warned of a rough 24 months ahead. "I ain't going to be Mr Popularity for a while," he says. Voters may not mind, if he is able to sort this disaster out.<img class="nc_pixel" src="https://pixel.newscred.com/px.gif?key=YXJ0aWNsZT0yOGI2ZWU2M2NmZGY4ZTcwMjI0ZTE5Zjg0NTY4OTkxOCZwdWJsaXNoZXI9NzMwZWI4NmFiNTlmMGQ0MTkyNmFjNjViMDFmODNlMmY=" border="0" alt="" width="1" height="1" style="line-height: 1.5em;"></p><p><a href="http://www.businessinsider.com/public-pensions-americas-greece-2014-12#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/public-pensions-americas-greece-2014-12Public Pensions Are America's Greecehttp://www.businessinsider.com/public-pensions-americas-greece-2014-12
Sat, 20 Dec 2014 13:02:00 -0500The Economist
<p><span style="line-height: 1.5em;"><img style="float:right;" src="http://static5.businessinsider.com/image/4ddbff01cadcbbfd2d1c0000-703-527/greek-protests.jpg" border="0" alt="Greek Protests">Bruce Rauner, a Republican, liked to talk tough about unions and public-sector pensions when he was campaigning for governor in Illinois. </span></p>
<p><span style="line-height: 1.5em;">"The system is full of fraud and self-dealing and abuses, such as folks who have a pay rise in the last years of their career [so their pension is higher] or folks who moved in and out of certain jobs, so they could get a pension," he said in August 2013. </span></p>
<p><span style="line-height: 1.5em;">With two or three pensions, some are making as much as half a million dollars in retirement pay, he claimed. This, he thundered, is a rip-off of taxpayers and other workers.</span></p>
<p>But as soon as Mr Rauner was elected last month, the self-made millionaire toned down the rhetoric. The size and complexity of the public-pension mess suddenly hit him, and, aware that he had to bring together Democrats, unions and creditors, he began to backtrack. He declares now that it is most important to "protect what is done--don't change history. Don't modify or reduce anybody's pension who has retired, or has paid into a system and they've accrued benefits."</p>
<p><span style="line-height: 1.5em;">Illinois is like Greece in one obvious way: it overpromised and underdelivered on pensions and has little appetite for dealing with the problem, says Hal Weitzman of the University of Chicago Booth School of Business. This large Midwestern state, with a population of 13m (Greece has 11m, though a far smaller GDP than Illinois), has the most underfunded retirement system of any state and the largest pension burden relative to state revenue.</span></p>
<p><span style="line-height: 1.5em;">It also has the highest number of public-pension funds close to insolvency, such as the one looking after Chicago's police and firemen. According to the Civic Federation, a budget watchdog, Illinois has piled up a whopping $111 billion in unfunded pension liabilities (see chart), in addition to $56 billion in debt for health benefits for pensioners. The state devotes one in four of its tax dollars to pensions, which is more than it spends on primary and secondary education.</span></p>
<p><img src="http://static3.businessinsider.com/image/5495afa4ecad04d020daa75f-1200-600/rtr4cvd2.jpg" border="0" alt="RTR4CVD2" style="color: #000000;"><span style="line-height: 1.5em;">Mainly as a result of this gargantuan pension debt, Illinois's bond rating is the lowest of all the states, which means dramatically higher borrowing costs. When the state government failed to address pension underfunding in its budget for 2014, two credit-rating agencies, Fitch and Moody's, cut the state's bond rating, which in Moody's case put Illinois on a par with Botswana. (An incensed editorial in the Chicago Tribune asked what Botswana had done to be so insulted.)</span></p>
<p>The main reason for the pension debacle is decades of underfunding. "Everything was always done with a short-term view," says Laurence Msall, head of the Civic Federation. "Unique to Illinois is the idea that you don't have to pay for pensions and you don't have to follow actuarial recommendations."</p>
<p><span style="line-height: 1.5em;">Whereas most other states follow the rules set by the Governmental Accounting Standards Board (GASB), which, however imperfect, require some budget discipline, Illinois has mostly ignored them. In 2013 the s</span><span style="line-height: 1.5em;">tate paid $2.8 billion into its pension fund for teachers, one of its five pension funds, but GASB rules would have required a contribution of $3.6 billion, says Joshua Rauh, a professor of finance at Stanford University.</span></p>
<p><span style="line-height: 1.5em;">According to Mr Rauh's calculations, Illinois's true unfunded pension liability is $250 billion. All the other calculations, he says, are based on over-optimistic assumptions. For example, the state assumes an average annual return on its investments of 7.75% over 30 years. But according to Mr Rauh it has only a 25% chance of achieving gains of that order.</span></p>
<p><span style="line-height: 1.5em;">After the public-relations disaster of th</span><span style="line-height: 1.5em;">e credit downgrades, Pat Quinn, the outgoing governor belatedly pushed for pension reform. In December 2013 the legislature approved a bill that reduces annual increases in pension payments, increases the retirement age and caps pensionable salaries. Some have welcomed it as Illinois's first actuarially sound pension-funding scheme, designed to get the five plans fully funded in 30 years. Mr Rauh, however, thinks that the reform "does not even come close to addressing the problem".</span></p>
<p><img src="http://static1.businessinsider.com/image/54463302ecad044b5e13cef3-1200-924/ap287297710983.jpg" border="0" alt=" Illinois Gov. Pat Quinn" style="color: #000000;"></p>
<p><span style="line-height: 1.5em;">Mr Quinn's changes were supposed to become law in June, but were held up by legal challenges and ultimately rejected by Judge John Belz of the Sangamon County circuit court for violating the state constitution, which makes existing pension contracts virtually untouchable. (Only New York and Arizona have similar safeguards in their constitutions.) Lisa Madigan, the state attorney-general, has appealed against the ruling to the Illinois Supreme Court, which is looking at the case.</span></p>
<p>James Spiotto, a lawyer at Chapman Strategic Advisors, argues that if a state is unable rather than unwilling to pay its pensions, then the well-being of its citizens overrides any constitutional protections. The Supreme Court has consistently ruled that states cannot abdicate their responsibility to provide essential services and infrastructure. And if Illinois cuts public services yet further the state will lose more taxpayers, resulting in "a death spiral", says Mr Spiotto.</p>
<p>Union representatives disagree with this scenario. Dan Montgomery, the president of the Illinois Federation of Teachers, believes Mr Quinn's reform is illegal and that the state must find ways to pay up, for instance by extending the repayment schedule of its debt and increasing tax revenue by closing loopholes and expanding a sales tax on services.</p>
<p>Mr Rauner was elected on a promise that he would not make his predecessor's temporary increase of income and corporate tax permanent. But he has not explained how Illinois will cope with the loss of more than $7 billion in annual revenue. Nor has he laid out any broader plans for fixing the pensions mess. For a start he might look to Washington and the budget deal hashed out in Congress. This allows some distressed private-sector pension plans to cut the benefits of retirees. In Illinois, though, more inventive measures may be needed.</p>
<p>In 2015 Illinois will either sink further into a Greek-style morass of debt or start its long-delayed rehabilitation. Mr Rauner has warned of a rough 24 months ahead. "I ain't going to be Mr Popularity for a while," he says. Voters may not mind, if he is able to sort this disaster out.<img class="nc_pixel" src="https://pixel.newscred.com/px.gif?key=YXJ0aWNsZT0yOGI2ZWU2M2NmZGY4ZTcwMjI0ZTE5Zjg0NTY4OTkxOCZwdWJsaXNoZXI9NzMwZWI4NmFiNTlmMGQ0MTkyNmFjNjViMDFmODNlMmY=" border="0" alt="" width="1" height="1" style="line-height: 1.5em;"></p><p><a href="http://www.businessinsider.com/public-pensions-americas-greece-2014-12#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/the-most-famous-road-in-america-will-become-an-electric-car-paradise-2014-12The Most Famous Road In America Will Become An Electric Car Paradisehttp://www.businessinsider.com/the-most-famous-road-in-america-will-become-an-electric-car-paradise-2014-12
Tue, 02 Dec 2014 16:39:43 -0500Stephen Edelstein
<p><img style="float:right;" src="http://static5.businessinsider.com/image/51a52a13ecad047c0d000001-1200-750/shutterstock_116233675.jpg" border="0" alt="Route 66"></p><p>As the song says, you can "get your kicks" on Route 66--but soon you'll also be able to get a charge.</p>
<p>The historic highway and the towns it passes through were largely done in by the construction of the Interstate highway system, but the need to stop and charge every so often makes an electric-car road trip more suited to the slower pace of Route 66.</p>
<p>The Route 66 revival is picking up speed in Illinois, where the state government is investing&nbsp;$1 million to install charging stations along a roughly 300-mile section of the road between Lake Michigan and the Mississippi River border with Missouri.</p>
<p><span>Dubbed the Illinois Route 66 Electric Corridor, the project will facilitate electric-car travel between Chicago and St. Louis.</span></p>
<p>Eight cities--Plainfield, Dwight, Pontiac, Normal, Lincoln, Springfield, Carlinville, and Edwardsville--will each install at least one public charging station accessible from Route 66.</p>
<p>One of the cities along the route--<a href="http://www.greencarreports.com/news/1089012_how-did-a-small-illinois-town-end-up-with-300-plug-in-cars" title="How Did A Small Illinois Town End Up With 300 Plug-In Cars?">Normal</a>--is also home to a large number of Mitsubishi i-MiEV and other electric cars, thanks to an aggressive infrastructure and incentive program.</p>
<p>Each of the new Route 66 charging sites will include at least one DC fast-charging station--with either CHAdeMO or CCS connectors--and one 240-Volt Level 2 station.</p>
<p>Installation of these stations is expected to begin this month, and Illinois officials hope to have the entire network completed by summer 2015.</p>
<p>The effort is backed by BMW, Mitsubishi and Nissan--which will oversee charging--station installation in Edwardsville--with technical support&nbsp;from the University of California, Davis.</p>
<p><span>The more urbanized landscape of Illinois may be far from the desert scenery and kitschy roadside attractions typically associated with Route 66, but the revitalized road will be as much an electrified intercity corridor as it is a tourist attraction.</span></p>
<p>As the national network of charging stations grows, longer-distance electric-car travel will become more convenient, breaking down one of the major barriers to widespread adoption.</p>
<p>For now at least, having to stop periodically could also make trips a little more memorable, and stimulate local economies--just as it did during the heyday of Route 66.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.greencarreports.com/news/1094684_tesla-passes-200-supercharger-sites-only-60-percent-in-u-s" >Only 60% Of Tesla's 200 Supercharger Stations Are In The US</a></strong></p>
<p><a href="http://www.businessinsider.com/the-most-famous-road-in-america-will-become-an-electric-car-paradise-2014-12#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/illinois-governor-elect-may-have-violated-a-major-campaign-finance-rule-2014-11Illinois' Governor-Elect May Have Violated A Major Campaign Finance Rulehttp://www.businessinsider.com/illinois-governor-elect-may-have-violated-a-major-campaign-finance-rule-2014-11
Wed, 12 Nov 2014 21:40:00 -0500David Sirota
<p dir="ltr"><img style="float:right;" src="http://static3.businessinsider.com/image/5464186a69bedd8117d2229d-480-/bruce-rauner-4.jpg" border="0" alt="Bruce Rauner" width="480"></p><p>Illinois Governor-elect Bruce Rauner accepted more than $140,000 worth of campaign donations from executives affiliated with firms in which Illinois pension systems have investments, according to documents reviewed by the International Business Times. The campaign donations flowed to Rauner despite state and federal rules designed to prevent pension investment managers from donating to candidates for public offices that oversee state pension systems. As governor, Rauner will now appoint the trustees who oversee Illinois’ pension investment decisions.</p>
<p dir="ltr">When IBTimes first presented the campaign finance documents to officials at the Illinois State Board of Investment late last week, they said they had never been asked about the donations. Days later, those officials&nbsp;<a href="http://privatemarkets.thomsonreuters.com/illinois-looks-for-conflicts-in-manager-contributions-to-rauner/21173055.article" target="_blank" rel="nofollow">announced</a>&nbsp;they are now conducting a formal review of the system’s private investment managers to see if they complied with campaign finance disclosure requirements.</p>
<p dir="ltr">The announcement of the review came&nbsp;<a href="http://www.bondbuyer.com/news/washington-securities-law/secs-top-cop-more-muni-enforcement-not-less-1067831-1.html" target="_blank" rel="nofollow">at the same time&nbsp;</a>the SEC’s top enforcement official publicly suggested that the agency will be be intensifying its scrutiny of the relationship between political contributions and public pension investments. That relationship was a central theme in the Illinois governor’s race when Rauner’s opponents questioned whether his personal&nbsp;<a href="http://articles.chicagotribune.com/2014-06-06/news/ct-rauner-pennsylvania-pension-met-0606-20140606_1_bruce-rauner-rauner-firm-gtcr-golder-rauner" target="_blank" rel="nofollow">campaign contributions</a>&nbsp;and&nbsp;<a href="http://www.chicagobusiness.com/article/20140115/BLOGS02/140119874/rauner-still-needs-to-answer-questions-about-his-stuart-levine-ties" target="_blank" rel="nofollow">payments</a>&nbsp;by one of his portfolio companies unduly influenced state investment decisions.</p>
<p dir="ltr">Rauner's campaign did not respond to an interview request from IBTimes.</p>
<p dir="ltr">Rauner is a longtime private equity executive whose firm, GTCR, manages public pension money. Financial disclosure<a href="http://www.ibtimes.com/midterms-2014-candidates-ties-pension-business-may-gain-control-state-pension-funds-1716624">&nbsp;documents</a>&nbsp;show he still retains ownership stakes in 15 GTCR entities. Though Rauner&nbsp;<a href="https://home.chicagobusiness.com/clickshare/authenticateUserSubscription.do?CSProduct=crainschicago-metered&amp;CSAuthReq=1:1573554860035056:AID:F1E711E88F127FAB95AA12702727493F&amp;AID=/20121019/NEWS01/121019735&amp;title=Rauner%20makes%20it%20official,%20retires%20from%20GTCR&amp;CSTargetURL=http://www.chicagobusiness.com/article/20121019/NEWS01/121019735/rauner-makes-it-official-retires-from-gtcr" target="_blank" rel="nofollow">said</a>&nbsp;he retired from the firm in 2012,<a href="http://www.adviserinfo.sec.gov/iapd/content/viewform/adv/Sections/iapd_AdvScheduleASection.aspx?ORG_PK=159545&amp;RGLTR_PK=50000&amp;STATE_CD=&amp;FLNG_PK=03C807A000080172023137E004CB7909056C8CC0" target="_blank" rel="nofollow">&nbsp;SEC documents</a>&nbsp;show he retains a partnership stake in at least one GTCR subsidiary. The two state<a href="https://trs.illinois.gov/investments/reports/ContractedManagers.pdf" target="_blank" rel="nofollow">&nbsp;pension</a><a href="http://www.illinois.gov/isbi/Documents/ISBI_Annual_Report_2013.pdf" target="_blank" rel="nofollow">&nbsp;systems</a>&nbsp;he will now oversee as governor list GTCR as managing state money.</p>
<p dir="ltr">The SEC's 2011 "pay-to-play"<a href="http://www.sec.gov/rules/final/2010/ia-3043.pdf" target="_blank" rel="nofollow">&nbsp;rule</a>&nbsp;effectively bars executives at firms that earn fees from managing public pension money from donating to candidates for offices that can influence public pension investments. The Illinois governor&nbsp;<a href="http://trs.illinois.gov/trustees/board.htm" target="_blank" rel="nofollow">appoints</a>&nbsp;<a href="http://appointments.illinois.gov/appointmentsDetail.cfm?id=152" target="_blank" rel="nofollow">trustees</a>&nbsp;to the boards overseeing the $40 billion Illinois Teachers Retirement System and the $13 billion Illinois State Board of Investment.</p>
<p dir="ltr">During his gubernatorial campaign, Rauner raised&nbsp;<a href="http://www.nbcchicago.com/blogs/ward-room/Citadel-Ken-Griffin-Bruce-Rauner-campaign-donation-Illinois-governor-263295761.html" target="_blank" rel="nofollow">millions</a>&nbsp;of dollars from executives in the financial sector -- and, despite the pay-to-play rule, some of the money came from executives at firms affiliated with funds that receive state pension investments. That includes:</p>
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<p dir="ltr"><a href="http://www.elections.il.gov/CampaignDisclosure/ContributionsSearchByCandidates.aspx?ddlCanSearchContributionType=All%20Types&amp;ddlCanSearchLastOnlyNameSearchType=Starts%20with&amp;txtCanSearchLastOnlyName=&amp;ddlCanSearchFirstNameSearchType=Starts%20with&amp;txtCanSearchFirstName=&amp;ddlCanSearchAddressSearchType=Starts%20with&amp;txtCanSearchAddress=&amp;ddlCanSearchCitySearchType=Starts%20with&amp;txtCanSearchCity=&amp;ddlState=&amp;txtCanSearchZip=&amp;txtCanSearchZipThru=&amp;ddlCanSearchOccupationSearchType=Starts%20with&amp;txtCanSearchOccupation=&amp;ddlCanSearchEmployerSearchType=Starts%20with&amp;txtCanSearchEmployer=mesirow&amp;txtCanSearchAmount=&amp;txtCanSearchAmountThru=&amp;txtCanSearchRcvDate=&amp;txtCanSearchRcvDateThru=&amp;ddlCanSearchOrderBy=Last%20or%20Only%20Name%20-%20A%20to%20Z&amp;txtCanElectYear=&amp;ddlCanElectType=All%20Types&amp;ddlCanLastNameSearchType=Starts%20with&amp;txtCanLastName=rauner&amp;ddlCanFirstNameSearchType=Starts%20with&amp;txtCanFirstName=&amp;ddlCanOffice=All%20Offices&amp;ddlCanDistrictType=All%20Types&amp;txtCanDistrict=&amp;ddlCanParty=All%20Parties&amp;ddlVendorLastOnlyName=Starts%20with&amp;txtVendorLastOnlyName=&amp;ddlVendorFirstName=Starts%20with&amp;txtVendorFirstName=&amp;ddlVendorAddress=Starts%20with&amp;txtVendorAddress=&amp;ddlVendorCity=Starts%20with&amp;txtVendorCity=&amp;ddlVendorState=&amp;txtVendorZip=&amp;txtVendorZipThru=&amp;ddlPurpose=Starts%20with&amp;txtPurpose=" target="_blank" rel="nofollow">$1,000</a>&nbsp;from Mesirow Financial&nbsp;<a href="http://www.mesirowfinancial.com/benefits/experience/kmety_m.jsp" target="_blank" rel="nofollow">senior managing director</a>&nbsp;Mark Kmety and&nbsp;<a href="http://www.elections.il.gov/CampaignDisclosure/ContributionsSearchByCandidates.aspx?ddlCanSearchContributionType=All%20Types&amp;ddlCanSearchLastOnlyNameSearchType=Starts%20with&amp;txtCanSearchLastOnlyName=&amp;ddlCanSearchFirstNameSearchType=Starts%20with&amp;txtCanSearchFirstName=&amp;ddlCanSearchAddressSearchType=Starts%20with&amp;txtCanSearchAddress=&amp;ddlCanSearchCitySearchType=Starts%20with&amp;txtCanSearchCity=&amp;ddlState=&amp;txtCanSearchZip=&amp;txtCanSearchZipThru=&amp;ddlCanSearchOccupationSearchType=Starts%20with&amp;txtCanSearchOccupation=&amp;ddlCanSearchEmployerSearchType=Starts%20with&amp;txtCanSearchEmployer=mesirow&amp;txtCanSearchAmount=&amp;txtCanSearchAmountThru=&amp;txtCanSearchRcvDate=&amp;txtCanSearchRcvDateThru=&amp;ddlCanSearchOrderBy=Last%20or%20Only%20Name%20-%20A%20to%20Z&amp;txtCanElectYear=&amp;ddlCanElectType=All%20Types&amp;ddlCanLastNameSearchType=Starts%20with&amp;txtCanLastName=rauner&amp;ddlCanFirstNameSearchType=Starts%20with&amp;txtCanFirstName=&amp;ddlCanOffice=All%20Offices&amp;ddlCanDistrictType=All%20Types&amp;txtCanDistrict=&amp;ddlCanParty=All%20Parties&amp;ddlVendorLastOnlyName=Starts%20with&amp;txtVendorLastOnlyName=&amp;ddlVendorFirstName=Starts%20with&amp;txtVendorFirstName=&amp;ddlVendorAddress=Starts%20with&amp;txtVendorAddress=&amp;ddlVendorCity=Starts%20with&amp;txtVendorCity=&amp;ddlVendorState=&amp;txtVendorZip=&amp;txtVendorZipThru=&amp;ddlPurpose=Starts%20with&amp;txtPurpose=" target="_blank" rel="nofollow">$2,000</a>&nbsp;from Mesirow Financial&nbsp;<a href="http://www.mesirowfinancial.com/investmentadvisory/investmentmgrs/wanger_d.jsp" target="_blank" rel="nofollow">managing director</a>&nbsp;David Wanger. ISBI’s&nbsp;<a href="http://www.illinois.gov/isbi/Documents/ISBI_Annual_Report_2013.pdf" target="_blank" rel="nofollow">2013 annual report</a>&nbsp;lists Mesirow Financial as a hedge fund-of-fund manager for the pension system, and lists $271 million in holdings in Mesirow investment vehicles. In an emailed statement, a Mesirow spokeswoman told IBTimes that a separate branch of Mesirow works with the Illinois pension system and that therefore "we do not believe these contributions violate the pay to play laws." Neither Rauner donor from Mesirow Financial "has any relationship with and/or receives any compensation from any state entity, nor do they pursue state business," she wrote.</p>
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<p dir="ltr"><a href="http://www.elections.il.gov/CampaignDisclosure/ContributionsSearchByCandidates.aspx?ddlCanSearchContributionType=All%20Types&amp;ddlCanSearchLastOnlyNameSearchType=Starts%20with&amp;txtCanSearchLastOnlyName=&amp;ddlCanSearchFirstNameSearchType=Starts%20with&amp;txtCanSearchFirstName=&amp;ddlCanSearchAddressSearchType=Starts%20with&amp;txtCanSearchAddress=&amp;ddlCanSearchCitySearchType=Starts%20with&amp;txtCanSearchCity=&amp;ddlState=&amp;txtCanSearchZip=&amp;txtCanSearchZipThru=&amp;ddlCanSearchOccupationSearchType=Starts%20with&amp;txtCanSearchOccupation=&amp;ddlCanSearchEmployerSearchType=Starts%20with&amp;txtCanSearchEmployer=sofinnova&amp;txtCanSearchAmount=&amp;txtCanSearchAmountThru=&amp;txtCanSearchRcvDate=&amp;txtCanSearchRcvDateThru=&amp;ddlCanSearchOrderBy=Last%20or%20Only%20Name%20-%20A%20to%20Z&amp;txtCanElectYear=&amp;ddlCanElectType=All%20Types&amp;ddlCanLastNameSearchType=Starts%20with&amp;txtCanLastName=rauner&amp;ddlCanFirstNameSearchType=Starts%20with&amp;txtCanFirstName=&amp;ddlCanOffice=All%20Offices&amp;ddlCanDistrictType=All%20Types&amp;txtCanDistrict=&amp;ddlCanParty=All%20Parties&amp;ddlVendorLastOnlyName=Starts%20with&amp;txtVendorLastOnlyName=&amp;ddlVendorFirstName=Starts%20with&amp;txtVendorFirstName=&amp;ddlVendorAddress=Starts%20with&amp;txtVendorAddress=&amp;ddlVendorCity=Starts%20with&amp;txtVendorCity=&amp;ddlVendorState=&amp;txtVendorZip=&amp;txtVendorZipThru=&amp;ddlPurpose=Starts%20with&amp;txtPurpose=" target="_blank" rel="nofollow">$2,500</a>&nbsp;from Sofinnova&nbsp;<a href="http://www.sofinnova.com/team_detail.php?sort=all&amp;id=37" target="_blank" rel="nofollow">general partner</a>&nbsp;James Healy. TRS&nbsp;<a href="https://trs.illinois.gov/investments/reports/ContractedManagers.pdf" target="_blank" rel="nofollow">lists</a>&nbsp;Sofinnova as a private equity manager. The system's&nbsp;<a href="http://trs.illinois.gov/pubs/cafr/FY2013/fy13.pdf" target="_blank" rel="nofollow">2013 annual report</a>&nbsp;says the firm manages $8.1 million of state pension money, and was paid more than $900,000 in fees that year. In&nbsp;<a href="http://trs.illinois.gov/press/2014/june24_14.pdf" target="_blank" rel="nofollow">June</a>, TRS committed to invest another $50 million of state pension cash in Sofinnova. Healy did not respond to IBTimes' interview request.</p>
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<p dir="ltr"><a href="http://www.elections.il.gov/CampaignDisclosure/ContributionsSearchByCandidates.aspx?ddlCanSearchContributionType=All%20Types&amp;ddlCanSearchLastOnlyNameSearchType=Starts%20with&amp;txtCanSearchLastOnlyName=&amp;ddlCanSearchFirstNameSearchType=Starts%20with&amp;txtCanSearchFirstName=&amp;ddlCanSearchAddressSearchType=Starts%20with&amp;txtCanSearchAddress=&amp;ddlCanSearchCitySearchType=Starts%20with&amp;txtCanSearchCity=&amp;ddlState=&amp;txtCanSearchZip=&amp;txtCanSearchZipThru=&amp;ddlCanSearchOccupationSearchType=Starts%20with&amp;txtCanSearchOccupation=&amp;ddlCanSearchEmployerSearchType=Starts%20with&amp;txtCanSearchEmployer=northern%20trust&amp;txtCanSearchAmount=&amp;txtCanSearchAmountThru=&amp;txtCanSearchRcvDate=&amp;txtCanSearchRcvDateThru=&amp;ddlCanSearchOrderBy=Last%20or%20Only%20Name%20-%20A%20to%20Z&amp;txtCanElectYear=&amp;ddlCanElectType=All%20Types&amp;ddlCanLastNameSearchType=Starts%20with&amp;txtCanLastName=rauner&amp;ddlCanFirstNameSearchType=Starts%20with&amp;txtCanFirstName=&amp;ddlCanOffice=All%20Offices&amp;ddlCanDistrictType=All%20Types&amp;txtCanDistrict=&amp;ddlCanParty=All%20Parties&amp;ddlVendorLastOnlyName=Starts%20with&amp;txtVendorLastOnlyName=&amp;ddlVendorFirstName=Starts%20with&amp;txtVendorFirstName=&amp;ddlVendorAddress=Starts%20with&amp;txtVendorAddress=&amp;ddlVendorCity=Starts%20with&amp;txtVendorCity=&amp;ddlVendorState=&amp;txtVendorZip=&amp;txtVendorZipThru=&amp;ddlPurpose=Starts%20with&amp;txtPurpose=" target="_blank" rel="nofollow">$5,000</a>&nbsp;from Northern Trust's&nbsp;<a href="https://locations.northerntrust.com/lake-forest-il.html?q=&amp;lgs=245212475&amp;rn=1" target="_blank" rel="nofollow">Senior Vice President</a>&nbsp;Brayton Alley. Illinois TRS&nbsp;<a href="https://trs.illinois.gov/investments/reports/ContractedManagers.pdf" target="_blank" rel="nofollow">lists</a>&nbsp;Northern Trust Investments as an equity manager. The system's&nbsp;<a href="http://trs.illinois.gov/pubs/cafr/FY2013/fy13.pdf" target="_blank" rel="nofollow">2013 annual report</a>&nbsp;says Northern Trust manages $2.3 billion of state money, and made $548,000 in fees from the system that year. A spokesman for the firm told IBTimes, "We are aware of the obligations under various Illinois and federal laws and regulations" and "we are unaware of any violation to such requirements."</p>
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<p dir="ltr"><a href="http://www.elections.il.gov/CampaignDisclosure/ContributionsSearchByCandidates.aspx?ddlCanSearchContributionType=All%20Types&amp;ddlCanSearchLastOnlyNameSearchType=Starts%20with&amp;txtCanSearchLastOnlyName=&amp;ddlCanSearchFirstNameSearchType=Starts%20with&amp;txtCanSearchFirstName=&amp;ddlCanSearchAddressSearchType=Starts%20with&amp;txtCanSearchAddress=&amp;ddlCanSearchCitySearchType=Starts%20with&amp;txtCanSearchCity=&amp;ddlState=&amp;txtCanSearchZip=&amp;txtCanSearchZipThru=&amp;ddlCanSearchOccupationSearchType=Starts%20with&amp;txtCanSearchOccupation=&amp;ddlCanSearchEmployerSearchType=Starts%20with&amp;txtCanSearchEmployer=cbre&amp;txtCanSearchAmount=&amp;txtCanSearchAmountThru=&amp;txtCanSearchRcvDate=&amp;txtCanSearchRcvDateThru=&amp;ddlCanSearchOrderBy=Last%20or%20Only%20Name%20-%20A%20to%20Z&amp;txtCanElectYear=&amp;ddlCanElectType=All%20Types&amp;ddlCanLastNameSearchType=Starts%20with&amp;txtCanLastName=rauner&amp;ddlCanFirstNameSearchType=Starts%20with&amp;txtCanFirstName=&amp;ddlCanOffice=All%20Offices&amp;ddlCanDistrictType=All%20Types&amp;txtCanDistrict=&amp;ddlCanParty=All%20Parties&amp;ddlVendorLastOnlyName=Starts%20with&amp;txtVendorLastOnlyName=&amp;ddlVendorFirstName=Starts%20with&amp;txtVendorFirstName=&amp;ddlVendorAddress=Starts%20with&amp;txtVendorAddress=&amp;ddlVendorCity=Starts%20with&amp;txtVendorCity=&amp;ddlVendorState=&amp;txtVendorZip=&amp;txtVendorZipThru=&amp;ddlPurpose=Starts%20with&amp;txtPurpose=" target="_blank" rel="nofollow">$9,600</a>&nbsp;from employees of the real estate firm CBRE. The 2013 annual reports of&nbsp;<a href="http://trs.illinois.gov/pubs/cafr/FY2013/fy13.pdf" target="_blank" rel="nofollow">TRS</a>&nbsp;and&nbsp;<a href="http://www.illinois.gov/isbi/Documents/ISBI_Annual_Report_2013.pdf" target="_blank" rel="nofollow">ISBI</a>&nbsp;show a combined $184 million worth of state pension investments in CBRE investment vehicles. A representative for CBRE told IBTimes that the employees are not covered by the SEC rule because they are not involved in state pension business and not employed by the subsidiary of CBRE that does pension investment work.</p>
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<p dir="ltr">More than&nbsp;<a href="http://www.elections.il.gov/CampaignDisclosure/ContributionsSearchByCandidates.aspx?ddlCanSearchContributionType=All%20Types&amp;ddlCanSearchLastOnlyNameSearchType=Starts%20with&amp;txtCanSearchLastOnlyName=&amp;ddlCanSearchFirstNameSearchType=Starts%20with&amp;txtCanSearchFirstName=&amp;ddlCanSearchAddressSearchType=Starts%20with&amp;txtCanSearchAddress=&amp;ddlCanSearchCitySearchType=Starts%20with&amp;txtCanSearchCity=&amp;ddlState=&amp;txtCanSearchZip=&amp;txtCanSearchZipThru=&amp;ddlCanSearchOccupationSearchType=Starts%20with&amp;txtCanSearchOccupation=&amp;ddlCanSearchEmployerSearchType=Starts%20with&amp;txtCanSearchEmployer=the%20john%20buck&amp;txtCanSearchAmount=&amp;txtCanSearchAmountThru=&amp;txtCanSearchRcvDate=&amp;txtCanSearchRcvDateThru=&amp;ddlCanSearchOrderBy=Last%20or%20Only%20Name%20-%20A%20to%20Z&amp;txtCanElectYear=&amp;ddlCanElectType=All%20Types&amp;ddlCanLastNameSearchType=Starts%20with&amp;txtCanLastName=rauner&amp;ddlCanFirstNameSearchType=Starts%20with&amp;txtCanFirstName=&amp;ddlCanOffice=All%20Offices&amp;ddlCanDistrictType=All%20Types&amp;txtCanDistrict=&amp;ddlCanParty=All%20Parties&amp;ddlVendorLastOnlyName=Starts%20with&amp;txtVendorLastOnlyName=&amp;ddlVendorFirstName=Starts%20with&amp;txtVendorFirstName=&amp;ddlVendorAddress=Starts%20with&amp;txtVendorAddress=&amp;ddlVendorCity=Starts%20with&amp;txtVendorCity=&amp;ddlVendorState=&amp;txtVendorZip=&amp;txtVendorZipThru=&amp;ddlPurpose=Starts%20with&amp;txtPurpose=" target="_blank" rel="nofollow">$90,000</a>&nbsp;in in-kind contributions from John Buck of the John Buck Company, which is listed as an investment manager for TRS. A spokesman for TRS, David Urbanek, told IBTimes that the pension system's investment in the John Buck Company "is now in wind-down mode" and added that "the company is no longer actively managing TRS money." A representative for the John Buck company said, "We do not manage money for TRS."</p>
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<p dir="ltr">While some of the contributions are relatively small, the SEC recently&nbsp;<a href="http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542119853#.VGOgBb4xF5g" target="_blank" rel="nofollow">prosecuted</a>&nbsp;its first pay-to-play case over donations totaling just $4,500. SEC sanctions can be strong: The rule can compel investment managers to return all fees they have collected from the pension systems after the political contributions were made.</p>
<p dir="ltr">Illinois state&nbsp;<a href="http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=003005000HArt.%2050&amp;ActID=532&amp;ChapterID=7&amp;SeqStart=16700000&amp;SeqEnd=19600000" target="_blank" rel="nofollow">law</a>&nbsp;also restricts contributions from state contractors to candidates for governor, though the executive director of ISBI, William Atwood, told IBTimes that the pension systems are exempt from the statute.</p>
<p dir="ltr">In a statement emailed to IBTimes, TRS' Urbanek said that "these investment decisions were all made by TRS independent of any knowledge of any contributions to any candidates." He added that many of the donors are at firms that received state pension investments "long before Governor-elect Rauner officially declared his candidacy and before the individuals working at these firms contributed to his campaign."</p>
<p dir="ltr">But legal experts, former SEC officials and campaign finance lawyers interviewed by IBTimes said the rule applies over the entire life of a pension fund investment because those investments can be terminated, sold off or extended at any time. The point is to prevent political contributions from influencing not just the original decision to invest, but the ongoing choice to continue or terminate the investment.</p>
<p dir="ltr">David Melton of the Illinois Campaign for Political Reform said pension "contracts come up for renewal periodically," and that it's therefore "inconsistent with the spirit and purpose of the law" to rely on the argument that the donations are acceptable because they were made after the original investment decision.</p>
<p dir="ltr">The SEC's recent pay-to-play prosecution wasn't concerned with whether the political contributions materially influenced pension funds’ original investment decisions made many years ago, as McKenna and Long's Stefan Passantino recently&nbsp;<a href="http://www.paytoplaylawblog.com/2014/06/articles/sec/sec-starts-hitting-the-private-sector-hard-for-pay-to-play-violations/" target="_blank" rel="nofollow">noted</a>: It was focused more generally on the fact that the contributions were not permissible.</p>
<p><em>Thomas Barrabi contributed to this report.</em></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/george-w-bush-responds-to-bill-clinton-twitter-challenge-2014-11" >George W. Bush Had The Perfect Response To Bill Clinton's Twitter Challenge</a></strong></p>
<p><a href="http://www.businessinsider.com/illinois-governor-elect-may-have-violated-a-major-campaign-finance-rule-2014-11#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/haunted-mcpike-mansion-2014-10Take A Peek Inside The 'Most Haunted House In The Midwest,' If You Darehttp://www.businessinsider.com/haunted-mcpike-mansion-2014-10
Fri, 31 Oct 2014 16:33:00 -0400Christian Storm
<p><img src="http://static3.businessinsider.com/image/5453d71cecad04ca3cbe0244-1200-803/mcpike_6.jpg" border="0" alt="McPike_6"></p><p></p>
<p>On a rather unassuming street in the otherwise nice town of Alton, Illinois, there lies a sinister estate that was once called the "<a href="http://phantasmagoriaphoto.blogspot.com/2011/05/most-haunted-house-in-america-mcpike.html">most haunted place in the Midwes</a><a href="http://phantasmagoriaphoto.blogspot.com/2011/05/most-haunted-house-in-america-mcpike.html">t</a>."</p>
<p>The McPike Mansion, a beautiful 16-room house sitting on 15 acres of overgrown land, has been vacant for more than 60 years, and maybe for good reason. Multiple ghastly figures, orbs, strange noises, and unexplained happenings have been documented over its almost 150 years of existence. Many believe that the ghost of former owners of the house and their servants still walk the grounds and inside the house's dilapidated halls.</p>
<p>Photographer <a href="http://www.backbeat-photography.com">Todd Morgan</a> got access to the house recently and shares the photos with us here. You can see more of his work on his <a href="https://www.facebook.com/pages/BackBeat-Photography/133080233401634?ref=bookmarks">Facebook</a>.&nbsp;</p>
<p>So, if you're feeling brave enough, take a tour of the McPike Mansion and get into the Halloween spirit.</p><h3>The McPike Mansion was built in 1869 for Henry Guest McPike, a business man and the one-time mayor of Alton. McPike was also a skilled horticulturist and during his time on the grounds, he perfected his own type of grape. </h3>
<img src="http://static4.businessinsider.com/image/5453d71c6bb3f7fe4fc62481-400-300/the-mcpike-mansion-was-built-in-1869-for-henry-guest-mcpike-a-business-man-and-the-one-time-mayor-of-alton-mcpike-was-also-a-skilled-horticulturist-and-during-his-time-on-the-grounds-he-perfected-his-own-type-of-grape.jpg" alt="" />
<br/><br/><h3>The house was built in the Italianate-Victorian style and has 16 rooms. When it was new, it had ornate molding, carved banisters, and boasted 11 marble fireplaces.</h3>
<img src="http://static4.businessinsider.com/image/5453d71b69bedd2d7ebd6af0-400-300/the-house-was-built-in-the-italianate-victorian-style-and-has-16-rooms-when-it-was-new-it-had-ornate-molding-carved-banisters-and-boasted-11-marble-fireplaces.jpg" alt="" />
<br/><br/><h3>The McPike family lived in the house until 1936 and has sat vacant since the 1950's. </h3>
<img src="http://static4.businessinsider.com/image/5453d71c6bb3f78851c6247a-400-300/the-mcpike-family-lived-in-the-house-until-1936-and-has-sat-vacant-since-the-1950s.jpg" alt="" />
<br/><br/><a href="http://www.businessinsider.com/haunted-mcpike-mansion-2014-10#the-house-also-features-gnarled-oak-trees-a-menacing-wrought-iron-fence-encircling-the-property-and-its-very-own-graveyard-spooky-4">See the rest of the story at Business Insider</a> http://www.businessinsider.com/police-raid-illinois-mans-home-due-to-parody-twitter-account-2014-9This Man Is Suing Peoria, Illinois, For Raiding His Home In Response To Twitter Account Lampooning The Mayorhttp://www.businessinsider.com/police-raid-illinois-mans-home-due-to-parody-twitter-account-2014-9
Fri, 19 Sep 2014 08:31:00 -0400Jason Keyser
<p><img src="http://static3.businessinsider.com/image/541c21936bb3f7480ff1a559-1200-924/peoria-illinois.jpeg" border="0" alt="peoria illinois"></p><p>Jon Daniel was watching cartoons with one of his sons when he created a spoof Twitter account in the name of the Peoria mayor. Out of boredom, he said, he soon began sending profane messages about sex, drugs, and alcohol.</p>
<p>Daniel never intended for the fake account to be seen by anyone other than his friends, and it never attracted more than a few dozen followers. But within weeks the raunchy parody led to a police raid of his home and ignited a debate about online satire, free speech, and the limits of a mayor's power.</p>
<p>Now Daniel is taking the matter to federal court in a lawsuit alleging the city violated his civil rights.</p>
<p>The 29-year-old, who works as a tavern cook in his hometown, modeled the tweets on those of other fake accounts that lampoon sports stars by tweeting in a voice that appears drunk. He was dumbfounded when Twitter suspended the account.</p>
<p>"I was like, 'Well, OK, that's the end of that chapter,'" he told The Associated Press.</p>
<p>Except it wasn't. A few weeks later, four police officers acting on a complaint from Mayor Jim Ardis raided the home Daniel shares with several roommates, seizing computers and smartphones.</p>
<p>Daniel discovered that the type of spoof that might be tolerated — or even welcomed as flattery — in Chicago, New York, or Hollywood can play differently in smaller cities in middle America, like Peoria, a manufacturing center of 120,000 people.</p>
<p>After the April raid, Peoria's public prosecutor declined to file charges, but with the backing of the American Civil Liberties Union of Illinois, Daniel filed the lawsuit, which he hopes sends a warning to others in power.</p>
<p>The raid unleashed waves of criticism — much of it on social media, where fake profiles of celebrities and prominent politicians have long proliferated.</p>
<p>Authorities sought warrants on the basis that Daniel falsely impersonated a public official. The fake account used the handle @peoriamayor and included Ardis' official photo and email address and a link to the mayor's bio on the city's website. Ardis saw the account as an attempt to steal his identity.</p>
<p>Daniel added the parody label — required under Twitter's terms of service — a few days after creating the account only when he noticed that people he did not know were starting to follow him.</p>
<p>Even without the label, an account that is clearly a parody is protected, legal experts say.</p>
<p>The tweets — one said, "Im (sic) thinking it's tequila and stripper night" — expressed a preoccupation with sex and drugs that no reasonable person could have concluded came from the actual mayor, the lawsuit argues.</p>
<p>It would have been a more difficult question if Daniel had been talking about policy issues, said Jack Lerner, an assistant law professor at the University of California at Irvine, though he does say Daniel was "unwise" not to include a clear parody label from the start.</p>
<p>For Daniel, the line is simple. "You can't do terrorist type of things or threaten people," he said in an interview at the ACLU office in Chicago. "But a simple joke, a parody, mocking somebody, that's obviously not illegal."</p>
<p>Twitter suspended the account after the city threatened to file a lawsuit.</p>
<p>City attorneys insist authorities had probable cause to seek Daniel's identity from Twitter and to raid his home. They've asked a judge to dismiss the case.</p>
<p>Ardis, Peoria's mayor for the past nine years, said he felt the tweets "went way over the line" and made him "a victim of sexual doggerel and filth."</p>
<p>"And perhaps I'm guilty of reacting as a man, as a father and as a husband rather than as a government official with whom constituents might disagree," he told a City Council meeting.</p>
<p>Other parody accounts have drawn scrutiny, although none apparently led to police raids. Police in Starkville, Mississippi, recently subpoenaed Twitter for information about the person behind an account in the name of Vice Mayor Roy Perkins.</p>
<p>In Arizona, state Rep. Michelle Ugenti introduced legislation in 2012 that would have made it a crime to create an online profile in someone else's name with the intent to "harm, defraud, intimidate, or threaten." Ugenti was the target of a Twitter parody but said her bill, which died in committee, was not meant to affect parodies.</p>
<p>Not all phony profiles are badly received.</p>
<p>When former White House Chief of Staff Rahm Emanuel was running for mayor of Chicago, a journalism professor crafted a fake, foul-mouthed Twitter version of Emanuel. The real Emanuel acknowledged the tweets sometimes captured his attitude on the campaign trail. He eventually met the man behind the account and even pledged to donate $5,000 to a charity of his choice.</p>
<p>And now, Twitter has at least a dozen Peoria mayor accounts — all fake.</p>
<p>Copyright (2014) Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.</p>
<p><img class="nc_pixel" src="https://pixel.newscred.com/px.gif?key=YXJ0aWNsZT01MTE0ODkxNmRiYjM1ZmE1OTZhMDlkNTAwZjFiNGE2YiZub25jZT03NDY1NTU5ZC0zMTNlLTRkMWItYTA5Mi1jMmRlMmI1OTI5N2MmcHVibGlzaGVyPTczMGViODZhYjU5ZjBkNDE5MjZhYzY1YjAxZjgzZTJm" border="0" alt="" width="1" height="1"></p><p><a href="http://www.businessinsider.com/police-raid-illinois-mans-home-due-to-parody-twitter-account-2014-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/top-obama-advisor-is-absolutely-positive-michelle-will-never-run-for-office-2014-6Top Obama Advisor Is '100% Positive' Michelle Will Never Run For Officehttp://www.businessinsider.com/top-obama-advisor-is-absolutely-positive-michelle-will-never-run-for-office-2014-6
Sun, 29 Jun 2014 10:32:00 -0400Colin Campbell
<p><img style="float:right;" src="http://static3.businessinsider.com/image/53b0202069bedd105e8877e5-480-/michelle-obama-getty.jpg" border="0" alt="michelle obama getty" width="480" /></p><p>One of the White House's most senior advisors on Sunday emphatically shot down rumors that First Lady Michelle Obama may run for office some day.</p>
<p>"No. I'm absolutely, 100% positive that that will never happen,"&nbsp;Valerie Jarrett,&nbsp;a Senior Advisor to President Barack Obama who has a relationship with both Obamas <a href="http://www.vogue.com/magazine/article/valerie-jarrett-baracks-rock/#1">going back decades</a>, said when asked about the prospect on "Meet the Press."</p>
<p>Michelle Obama's high profile has <a href="http://blogs.reuters.com/great-debate/2014/06/05/is-michelle-running-for-the-senate/">recently led to a round of speculation</a> that the Chicago native could be eyeing a bid for office. Senator Mark Kirk (R-Illinois) is up for re-election in 2016, creating a potential opening, and after Hillary Clinton, there is at least one precedent of a former first lady running for the U.S. Senate.</p>
<p><span>However, Obama and others have insisted she won't run.</span></p>
<p>"No, it will not be political," Obama <a href="http://www.huffingtonpost.com/2014/06/23/michelle-obama_n_5523854.html">said last Monday</a> of her next act. "It definitely will not be. It will be mission-based, service-focused."&nbsp;</p>
<p>On "Meet the Press" Sunday, Jarrett was also asked if she might consider her own run for office.</p>
<p>"Unlikely," Jarrett replied. "<span style="line-height: 1.5em;">Not as definitive as the First Lady but highly unlikely."</span></p><p><a href="http://www.businessinsider.com/top-obama-advisor-is-absolutely-positive-michelle-will-never-run-for-office-2014-6#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/farmers-sues-towns-over-climate-damage-2014-5An Insurance Company Is Suing 200 Illinois Towns For Not Being Better Prepared For Climate Changehttp://www.businessinsider.com/farmers-sues-towns-over-climate-damage-2014-5
Sun, 18 May 2014 19:24:00 -0400Rob Wile
<p><img src="http://static4.businessinsider.com/image/53793eefeab8ea237e445bf4-1200-858/rtxyw1y.jpg" border="0" alt="illinois flooding" /></p><p>An insurance company is suing nearly 200 Chicago-area towns for failing to do more to prevent damages it says are linked to climate change, <a href="http://www.csmonitor.com/Environment/Latest-News-Wires/2014/0517/Climate-change-lawsuits-filed-against-some-200-US-communities">Reuters' Mica Rosenberg reports</a>.</p>
<p><span>Farmers Insurance is asking the communities to return flood claims from the spring of 2013, which caused at least $218 million in losses. The towns should have done more to </span><span style="font-size: 15px; line-height: 1.5em;">fortify their sewers and stormwater drains, the group argues.&nbsp;</span><span style="font-size: 15px; line-height: 1.5em;">Rosenberg:&nbsp;</span></p>
<p style="padding-left: 30px;"><span style="font-size: 15px; line-height: 1.5em;"><span>The legal debate may center on whether an uptick in natural disasters is foreseeable or an "act of God." The cases raise the question of how city governments should manage their budgets before costly emergencies occur.</span></span></p>
<p><span style="font-size: 15px; line-height: 1.5em;">It's not the first time an insurance company has made such a contention &mdash; there were a flurry of climate-change related lawsuits, ultimately dismissed, in the wake of Hurricane Katrina &mdash; but experts say we are likely to see more.</span></p>
<p><span style="font-size: 15px; line-height: 1.5em;"><span>"No one is expected to plan for the 500-year storm, but if horrible events are happening with increasing frequency, that may shift the duties,"&nbsp;<span>Michael Gerrard, director of the Center for Climate Change Law at Columbia Law School in New York, told Rosenberg.</span></span>&nbsp;</span></p>
<p><span style="font-size: 15px; line-height: 1.5em;">Ironically, the region's avowal of the threat posed by climate change &mdash; and its alleged subsequent failure to do more to address it &mdash; may have made them a target, Rosenberg reports. Farmers cites Chicago's climate action plan in its suit to argue it was aware of risks like flooding.&nbsp;</span></p>
<p><a href="http://www.csmonitor.com/Environment/Latest-News-Wires/2014/0517/Climate-change-lawsuits-filed-against-some-200-US-communities">Read the full story here &raquo;</a></p>
<p>(<a href="http://www.forbes.com/sites/kensilverstein/2014/05/18/rift-widening-between-energy-and-insurance-industries-over-climate-change/"><em>Via Ken Silverstein</em></a>)</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/usda-honeybee-loss-report-2014-5" >Government Report Says An 'Unexpected Problem' Is Killing Honeybees</a></strong></p>
<p><a href="http://www.businessinsider.com/farmers-sues-towns-over-climate-damage-2014-5#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/a-few-of-bruce-rauners-favorite-things-2014-5A Few Of Bruce Rauner's Favorite Things http://www.businessinsider.com/a-few-of-bruce-rauners-favorite-things-2014-5
Tue, 06 May 2014 09:16:00 -0400Hunter Walker
<p><img style="float:right;" src="http://static5.businessinsider.com/image/5367ee276da8115b648b4570-480-/ap249999344656.jpg" border="0" alt="Bruce Rauner " width="480" /></p><p>On his campaign website, Republican Illinois gubernatorial candidate and billionaire R8 Capital Partners founder Bruce Rauner <a href="http://brucerauner.com/about/">describes himself</a> as "a self-made businessman who had no inheritance or family wealth" and "has never let his success change him."</p>
<p>As evidence of this, the site notes that Rauner "still drives a 20-year-old camper van, wears an $18 watch, and stays in the cheapest hotel room he can find when he&rsquo;s on the road."</p>
<p>However, court documents from Rauner's 1993 divorce indicate his penchant for more extravagant items including jewelry, antique furniture, and dishware.</p>
<p>Rauner and his first wife, Elizabeth, were divorced in 1993 <a href="http://www.businessinsider.com/bruce-rauner-1993-divorce-2014-5" target="_blank">after she said she had discovered he was allegedly having an affair</a>. As part of their settlement agreement, the couple divided up their assets, which included properties, frequent-flyer miles, and millions of dollars.</p>
<p>As part of the settlement, Rauner requested to keep his "jewelry and personal effects." There was also a long list of "household furniture and personal property" that was allocated to Rauner.</p>
<p>Based on the list, Rauner evidently has a taste for fine furniture. Among other things, he was allocated a "mahogany curved leg table," "sideboard and butler's cart," "Victorian chairs," and a "blue oriental rug." He also made sure to keep dishes, including "6 gold leaf dessert plates," a "Wedgewood Queensware plate," and an "Atlantis decanter and 4 glasses." Rauner also took some other household items: a set of "Swedish candlesticks," "brass fireplace tools," "brass sconces," and an item tantalizingly described as a "bronze elk head."</p>
<p>Rauner's taste in interior decorating was previously documented in 2004 when <a href="https://www.privateequityinternational.com/News_And_Analysis/2004/May/Magazine/The_CEO_Seducer/?highlight=rauner%20cigar%20room">Private Equity International wrote about his "cigar room" in Chicago's Sears Tower</a>&nbsp;(now the Willis Tower). PEI noted the room was "adorned with mounted, taxidermic birds," featured "a tall humidor filled with expensive brands of cigars," and "plush seating." Rauner told PEI he used the room as a "marketing tool."</p>
<p>"There are a lot of investment bankers and entrepreneurs who love a cigar when they're relaxing and talking about things. I find it a big icebreaker. I've had people call me and say, &lsquo;Bruce, we haven't met in the cigar room for a while,&rsquo;&rdquo; he said.</p>
<p>Rauner's campaign did not immediately respond to a request for comment on this story.</p>
<p>View the full list of Rauner's favorite things below.&nbsp;</p>
<p>&nbsp;<img src="http://static1.businessinsider.com/image/5367efb4eab8ea8b16c44727-664-908/rauner-list.jpg" border="0" alt="rauner list" width="800" /></p><p><a href="http://www.businessinsider.com/a-few-of-bruce-rauners-favorite-things-2014-5#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/bruce-rauner-1993-divorce-2014-5Illinois Gubernatorial Candidate Divorced In 1993 After Alleged Affairhttp://www.businessinsider.com/bruce-rauner-1993-divorce-2014-5
Mon, 05 May 2014 16:21:00 -0400Hunter Walker
<p><img src="http://static6.businessinsider.com/image/5367e103eab8eaca5fc44727-800-/ap89915563869.jpg" border="0" alt="Bruce Rauner" width="800" /></p><p>Republican Illinois gubernatorial candidate and billionaire private equity businessman Bruce Rauner prominently features his relationship with his current wife, Diana, in <a href="http://abclocal.go.com/wls/story?id=9492044">an ad for his campaign</a>. However, though Rauner has made his family life a major part of his campaign since winning the GOP nomination in March, the circumstances behind the ending of his first marriage have never been revealed.&nbsp;</p>
<p>Court documents examined by Business Insider reveal a previously unknown aspect of his biography: Rauner's marriage to his first wife, Elizabeth, ended after she said she had discovered that he'd had a "paramour" in 1990. This alleged affair has not been previously reported.</p>
<p>According to a divorce settlement signed by both Bruce and Elizabeth on July 29, 1993, they were married in 1980. The pair had three children together. In 1992, documents in their divorce case indicate Elizabeth Rauner objected to Bruce Rauner's attempt to have a lawyer named Daniel Levy join his legal team because of a meeting the couple had had with him when she first began to explore the possibility of getting a divorce in 1990. At a hearing in October 1992, both Elizabeth and Bruce Rauner's lawyers discussed her account of discovering an affair.</p>
<p>Court transcripts of that hearing show James Feldman, who was representing Elizabeth Rauner, outlining the circumstances of the meeting with Levy.</p>
<p>"Our client, Beth, has three small children. She discovered a paramour existed. She then confronted Mr. Rauner. He said that he wanted to reconcile continuing to live in the house," Feldman explained. "Then she discovered some notes indicating that he had consulted with an attorney about a divorce. He then suggested to her that they consult with an attorney."</p>
<p>View that portion of the transcript below:</p>
<p><img src="http://static3.businessinsider.com/image/5367f56beab8eacd27c44728-652-493/feldman-rauner2.jpeg" border="0" alt="feldman rauner2" width="800" /></p>
<p>Levy, who was seeking to represent Rauner, spoke next and said there were "several things that have to be corrected" about Feldman's account of the meeting. Though Levy disagreed the meeting constituted "shared confidences" between him and Elizabeth Rauner, he did not dispute or confirm Feldman's statement she found her husband had a "paramour." The judge subsequently denied Bruce Rauner's request to have Levy represent him.</p>
<p>Elizabeth Rauner's discovery of the alleged affair was also discussed in an affidavit she gave in conjunction with Bruce Rauner's attempts to have Levy on his legal team. The affidavit, signed by Elizabeth Rauner, said the couple "were experiencing marital difficulties" in the "summer of 1990" and that Bruce Rauner told her "despite his liaison with another woman, he still wanted to remain at home and attempt to reconcile the marriage."</p>
<p>According to the affidavit, Elizabeth Rauner then discovered her husband "talked to a divorce lawyer, and also to a mental health professional &hellip; who specialized in working with children in restructured families." At the time of their "difficulties," the couple's three children would have been about 6, 4, and 1 year old.</p>
<p>View that portion of the affidavit below:</p>
<p>&nbsp;<img src="http://static3.businessinsider.com/image/5367f5c769bedd6e598b456f-495-369/rauner-2.jpeg" border="0" alt="rauner 2" width="800" /></p>
<p>In another 1992 affidavit, Elizabeth Rauner discussed her fear that Bruce Rauner would take action that would "disturb the status quo of our assets" as they were negotiating the settlement. Elizabeth Rauner said this worry was provoked by a phone call in which Bruce Rauner told her he was attempting to purchase a home where "he intended to reside with his girlfriend."</p>
<p><img style="float:right;" src="http://static1.businessinsider.com/image/5367f704eab8ea552ec4472d-599-355/rauner-ad.jpg" border="0" alt="bruce rauner diana " width="480" />Bruce Rauner's marriage to Elizabeth was officially dissolved on July 29, 1993.</p>
<p>Last month, a <a href="http://abclocal.go.com/wls/story?id=9492044">Chicago ABC affiliate reported</a> Bruce and his second wife, Diana, have been married for &ldquo;20 years.&rdquo; On his <a href="http://brucerauner.com/about/">campaign website</a>, Bruce Rauner describes Diana as "the love of his life." According to engagement notices posted in both <a href="http://www.nytimes.com/1989/01/01/style/september-bridal-for-ms-mendley.html">The New York Times</a> and <a href="http://articles.chicagotribune.com/1988-11-20/features/8802180481_1_chicago-investment-firm-mba-pediatrics">The Chicago Tribune</a>, as of 1989, Diana was an associate at the investment firm where Rauner was partner and was set to be married to another man.</p>
<p>Neither Bruce Rauner nor his campaign responded to a request for comment on this story.&nbsp;</p>
<p>View a selection of relevant court documents from Bruce and Elizabeth Rauner's divorce below.&nbsp;</p>
<p><iframe width="100%" height="600" frameborder="0" src="//www.scribd.com/embeds/222155319/content?start_page=1&amp;view_mode=scroll&amp;show_recommendations=true" data-auto-height="false" data-aspect-ratio="undefined"></iframe></p><p><a href="http://www.businessinsider.com/bruce-rauner-1993-divorce-2014-5#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/states-where-people-want-to-move-2014-5People In Texas Really Don't Want To Leave, While People In Illinois Want To Fleehttp://www.businessinsider.com/states-where-people-want-to-move-2014-5
Thu, 01 May 2014 09:40:00 -0400Christina Sterbenz
<p><a href="http://www.gallup.com/poll/168770/half-illinois-connecticut-move-elsewhere.aspx">Data from a recent Gallup poll</a> shows that people living in Connecticut and Illinois aren't too happy with their environment: H<span style="line-height: 1.5em;">alf of residents say that, given the chance, they'd move to a different state.</span></p>
<p><span style="line-height: 1.5em;">The states where people want to stay? Texas and Montana come out really well.</span></p>
<p><span style="line-height: 1.5em;"><img src="http://static5.businessinsider.com/image/53624c8469beddb45a667746-800-/djeqzpk0ae2mphx6nsrcwg.png" border="0" alt="Connecticut Illinois Vox map" width="800" style="line-height: 1.5em; font-size: 15px;" /></span></p>
<p><span style="line-height: 1.5em;">In Illinois, 50% of respondents want to leave, while only 49% do in Connecticut. Maryland is a close third, with 47% of respondents expressing the same desire.&nbsp;</span></p>
<p><span style="line-height: 1.5em;">But in Montana, Hawaii, and Maine, 23% reported they'd move if the opportunity arose. And only 24% of respondents felt that way in Texas.</span></p>
<p><span style="line-height: 1.5em;"><img src="http://static3.businessinsider.com/image/53624fd4eab8ea584647f391-638-383/screenshot 2014-05-01 09.39.43.png" border="0" alt="state move data" /><br /></span></p>
<p>To obtain the data, Gallup conducted at least 600 interviews with people aged 18 and older across the 50 states. The survey asked, "<span>Regardless of whether you&nbsp;</span><em>will</em><span>&nbsp;move, if you had the opportunity, would you&nbsp;</span><em>like&nbsp;</em><span>to move to another state, or would you rather remain in your current state?"</span></p>
<p><span>And if you consider intention to move, Nevada comes out on top: 20% plan to move in the next 12 months.&nbsp;</span></p>
<p><span>In total, 33% of all people in the U.S. want to move to another state.&nbsp;</span></p>
<p>(Via <a href="http://www.vox.com/2014/4/30/5668588/illinois-connecticut-maryland-gallup-interstate-migration-rates">Vox</a>)</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/happiest-states-in-america-2014-2" >The Happiest States In America</a></strong></p>
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